Saskatoon budget talks get underway, higher tax proposed

The City of Saskatoon’s budget deliberations are underway, with administration proposing to further hike pre-approved property taxes.

City council initially approved a 3.53 per cent tax increase for the 2023 budget in November 2021, as part of the city’s new multi-year budget process.

Now, administration is considering raising the property tax hike up to 4.38 per cent.

Under the new rate, an owner with a home valued at $344,000 would pay about $7.28 more per month — up from the originally approved $5.87 per month.

Clae Hack, the city’s chief financial officer, introduced the budget on Monday.

Hack said the city is facing new financial pressures this year, unforeseen when the budget was discussed in 2021.

The city is incurring higher costs for fuel, natural gas, materials and labour — leaving a $2.29 million gap that needs to be covered by property taxes, according to Hack.

Discover Saskatoon CEO Steph Clovechok spoke against the increase. Clovechok said the added cost would be another blow to businesses already struggling.

“Travel has not returned by any means to its pre-pandemic levels and neither has sport travel, and those are our bread and butter in our visitor economy,” Clovechok told CTV News, after presenting to city hall.

Clovechok said if the new hike moves ahead “business are going to have to consider where they redistribute this additional cost,” which will likely be passed on to the consumer.

“Room rates might go up, or a restaurant might have to charge more, or retailers might have to mark things up,” Clovechok said.

The property tax hike of 4.38 per cent is a recommendation. The finalized rate is in the hands of city councillors.

Mayor Charlie Clark joined the meeting virtually on Monday. Clark said he was stuck in Lloydminster in the snowstorm.

The mayor is expected to be back in-person on Tuesday for the second day of budget talks.