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.
CTVNews.ca Top Stories
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
How to avoid the trap of becoming 'house poor'
The journey to home ownership can be exciting, but personal finance columnist Christopher Liew warns about the trappings of becoming 'house poor' -- where an overwhelming portion of your income is devoured by housing costs. Liew offers some practical strategies to maintain better financial health while owning a home.
Toxic forever chemicals in drinking water: Is Canada doing enough?
As the United States sets its first national limits on toxic forever chemicals in drinking water, researchers say Canada is lagging when it comes to regulations.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Some customers steaming after McDonald's ends free hot drink sticker program
It took years for Vinnie Deluca to collect more than 400 cards worth of free McDonald's McCafe coffee, a collection that now has "zero value" after the company discontinued the program.
Biden scores endorsements from Kennedy family, looking to shore up support against Trump and RFK Jr.
U.S. President Joe Biden will accept endorsements from at least 15 members of the Kennedy political family during a campaign stop in Philadelphia on Thursday as he aims to undermine Donald Trump and marginalize the candidacy of Robert F. Kennedy Jr.
Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation
Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.
When new leaders took over in ancient Maya, they didn't just bury the former royals. They burned their bodies in public
New archeological investigations in Guatemala reveal that the ancient Maya people had a ritual of burning royal human remains as a public display of political regime change.
Prince William returns to public duties after wife Kate's cancer revelation
Prince William will return to public duties on Thursday for the first time since his wife Kate revealed she was undergoing preventative chemotherapy for cancer.