Saskatoon’s 2020 gross year-end deficit forecast at $5.7 million

Saskatoon’s year-end deficit isn’t looking nearly as big as it did during the same time last year.

In 2020, the city was staring down a $20.1-million deficit because of the early November blizzard costs, and the effects of the COVID-19 pandemic on city finances.

At Monday’s Governance and Priorities Committee meeting, councillors were presented the report outlining this year’s $5.7-million projected gross deficit. According to the report, most of it will be offset with contingency funding.

Saskatchewan municipalities cannot legally run deficits.

Around $3.7 million was put into a contingency fund from the federal Canada Community Building Fund to offset any potential 2021 deficit.

Another $1.25 million will come from a provincial government highways payment, leaving the city with a $739,000 deficit.

However, because residents used so much water and power during the hot and dry summer, the Utilities Department is expecting an $8.1-million surplus. Much of that money is expected to be transferred to various stabilization reserves.

The year-end deficit doesn’t include the city’s controlled corporations like SaskTel Centre, TCU Place and Remai Modern.

According to the report, TCU Place is forecasting a $2.9-million loss because of cancelled events due to the pandemic. SaskTel Centre’s deficit will be covered by its Stabilization Reserve, while Remai Modern is expected to break even.

Hiring and spending restrictions will also remain in place.