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
NEW After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
BREAKING Police cordon off Iran consulate in Paris where man threatens to blow himself up: French media
French police cordoned off the Iranian consulate in Paris on Friday, where a man was threatening to blow himself up, Europe 1 radio and BFM TV.
Some Canadian families will receive up to $620 per child today
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
BREAKING Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site
An apparent Israeli drone attack on Iran saw troops fire air defences at a major air base and a nuclear site early Friday morning near the central city of Isfahan, an assault coming in retaliation for Tehran's unprecedented drone-and-missile assault on the country.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Ottawa to force banks to call carbon rebate a carbon rebate in direct deposits
Canadian banks that refuse to identify the carbon rebate by name when doing direct deposits are forcing the government to change the law to make them do it, says Environment Minister Steven Guilbeault.
Ontario woman loses $15,000 to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.