Saskatoon property taxes could see 13 per cent hike as city confronts $75M revenue gap
Significant property tax hikes may be needed to cover a funding shortfall, according to City of Saskatoon administration.
In 2024, the city is set to face a $52.4 million funding gap. The next year, in 2025, a $23.2 million revenue gap is projected.
Clae Hack, the city’s chief financial officer, largely attributed the gap to inflation.
“Nobody's happy presenting these numbers. Administration's not happy. We don't expect residents, businesses or city council to be happy with where the numbers are at right now,” Hack told reporters at city hall, in front of a screen projecting the city’s gloomy financial figures.
Hack said “it's pretty unprecedented” for the city to see this high of a funding gap.
“It’s probably close to double where we're typically starting these conversations,” Hack said.
To make up the money, Hack said “everything is on the table” — including raising property taxes and adjusting city service levels.
During the media briefing Wednesday morning, Hack presented a chart showing potential 2024 tax increases and how much money the city would need to slash from its budget to acheive them.
At the lower end of the spectrum, the city would need to find nearly $35.5 million in savings to hold property tax increases to six per cent.
The highest number Hack floated was a 13 per cent increase — which would still require almost $15.7 million in cuts.
“It’s difficult to say where the property tax will end up,” Hack said.
If the revenue gap isn’t confronted, the city would be faced with a 18.56 per cent property tax impact for 2024 and 6.95 per cent the following year.
Hack said administration is “not recommending anything” at this time, but rather simply presenting the numbers.
It will be up to city council to make the tough decisions about how to address the funding shortfall.
Hack used fire trucks as an example of how the city is battling inflationary pressure. A fire truck costs about $1.5M today, but two years ago it was $900,000.
He also pointed to certain projects putting pressure on the budgets — such as a spike to snow clearing costs, extending Saskatoon Transit services and the opening of Recovery Park.
Recovery Park is a waste diversion facility, next to the landfill, that will accept materials such as appliances, construction and demolition waste, and rigid plastics.
Budget meetings with city councillors and committees are scheduled throughout the summer.
CTVNews.ca Top Stories
DEVELOPING Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
BREAKING Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
On federal budget, Macklem says 'fiscal track has not changed significantly'
Bank of Canada governor Tiff Macklem says Canada's fiscal position has 'not changed significantly' following the release of the federal government's budget.