Murray Wood: Who's scary... and who's scary good?
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The City of Saskatoon is working to address massive funding gaps over the next two years, and the search for savings will continue at a special meeting next week.
According to Clae Hack, the city’s chief financial officer, Saskatoon is projecting a $50.9-million funding gap in 2024 and a $21.7-million gap the following year.
Without intervention, Hack said property taxes would need to be increased by 17.33 per cent in 2024 and 6.25 per cent in 2025. But as scary as those figures sound, Hack said there’s still time to address the gaps.
“I must stress again, these early figures in no way represent any kind of finalized or even proposed property tax increases for residents and our business community,” Hack said in a statement.
According to the city, administration is set to deliver a series of reports outlining options for city council to lower the funding gaps. The reports will be discussed at the special budget meeting set for Tuesday, the latest in a series of special meetings related to the 2024-25 budget.
“With significant and challenging budget adjustments required to reduce the City’s estimated funding gaps for 2024 and 2025, at the July 25 meeting, the Administration will present a Budget Status Update Information Report which revises the funding needed over the next two years to maintain services at the service levels at which they are currently delivered by the City,” the city said in a statement.
The city said everything will be on the table when it comes to the search for savings, and Tuesday’s meeting will include a close look at the expenses, revenues and historical budget changes for transportation, community support, Saskatoon Fire, environmental health, taxation and general revenue, land development, and arts, culture and event venues.
“Also, in response to prior Council resolutions, City Administration will present a series of Information Reports on the municipal comparison of Full-Time Equivalent employees (FTEs), impacts of a City-wide hiring freeze/not hiring additional staff, and the status of the City’s temporary workforce for (Governance and Priorities Committee’s) review,” the city said.
Hack said the process will be open, and the intent is to keep services running as efficiently as possible.
“The entire budget process is designed to be completely public and transparent and requires the City to look ahead to 2024 and 2025 estimated costs, which is what this process is all about,” Hack said in the statement.
“Our goal is to support the delivery of services and service levels in the most efficient way possible, to keep our community safe, and to aid Saskatoon’s ability to grow and attract new residents, and businesses that create jobs.”
The initial estimates for the funding gaps were $52.4 million next year and $23.2 million in 2025, but Hack said the numbers have come down thanks to “increased revenue-sharing expectations from the province and other adjustments.”
In 2023, Saskatoon residents saw a 3.93 per cent property tax increase.
