City of Saskatoon projects $6.8 million deficit for 2022

The City of Saskatoon is projecting a $6.8 million deficit for the 2022 fiscal year.

Director of finance Kari Smith says the bulk of the deficit comes from fuel expenditures stemming from increased gas prices and the snow and ice program, both coming in at least $3 million over budget.

“We spend quite a bit of time making sure that we have the best estimate at the time for our budgets, and really try to hone those numbers down for council approval each year,” said Smith.

Higher than average snowfall led to the snow and ice program deficit, according to the city. The budget still has to cover costs for any snow that falls later in the year.

“We're assuming that we'll still get a snowfall or two in November and December, so it does include our projection to the end of the year,” said Smith.

“As we know that can change things. So, we might get a little snow or we might get a ton of snow like we did in 2020, and let's cross our fingers that's no on that one. So, it is really weather dependent as to where we'll end up. That $3 million over-budget is our best estimate right now of where we'll end up.”

Other challenges the city faced financially include lower revenues from leisure centres and parking ticket violations, while more revenue came in than expected from Saskatoon transit.

Smith says residents in the city shouldn’t expect higher taxes or fees to make up for the deficit.

“We handle [deficits] through the reserves that we build, we handle through those things,” she said.

“We set rates in accordance with our budget, so rates would be set when we do that [2023] and [2024] budget. So, it's future ones and the property taxes accordingly.”

Smith says the city has also worked on cost-cutting measures.

“In the report, it talks about $2.5 million that the administration thinks we can save by the end of the year in things like reduced travel, reduced training and some staff vacancies,” she said.

“Not filling positions right away with affect services, of course, but making sure that we can kind of save wherever we can to try to really make sure we're bringing down that deficit.”

A third quarter project will be put towards the city council in October or November with a clearer picture of what the year-end finances will look like.