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
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
U.S. says Israel's use of U.S. arms likely violated international law, but evidence is incomplete
The Biden administration said Friday that Israel's use of U.S.-provided weapons in Gaza likely violated international humanitarian law but wartime conditions prevented U.S. officials from determining that for certain in specific airstrikes.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Mother assaulted by stranger while breastfeeding baby in her car: Vancouver police
A person was arrested in East Vancouver Thursday after allegedly entering a car while a mother was breastfeeding her four-month-old boy.
More than half the Canadians once detained in Syrian camps for suspected ISIS family members have returned home
A total of 29 Canadians have been freed from detention camps in northeast Syria and brought back to Canada since human rights advocates began lobbying for their release years ago.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
Amish youth experience a rite of passage called Rumspringa. It’s not what you might think
The idea of “Rumspringa” has a specific spot in the American imagination. A rite of passage for young people in some Amish communities, Rumspringa is seen by most outsiders as a wild time away from strict Amish rules, when teenagers can experiment with the modern vices of the world.