Saskatoon administration reports $1.4 million third-quarter surplus after big tax hike

Just one week after Saskatoon city council approved the second-highest property tax increase in a decade at 6.7 per cent for 2026, the city’s finance department says the city is sitting on an overall surplus of $1.4 million.

The city’s utilities are also doing well at this point, with a projected surplus of $12.3 million, as well as “significant” fuel savings.

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The numbers are part of the third-quarter report that will be presented to councilors at the next Governance and Priorities committee meeting on Tuesday.

But according to the report by Kari Smith, the city’s director of finance, not all departments or entities connected with the city are “in the black.”

“Saskatoon Police Service (SPS) is projecting a $2.6 million deficit (0.39% deviation) which is expected to be covered through the Saskatoon Police Service Fiscal Reserve,” the fiscal update noted.

Parking revenue and parking violations are not bringing in as much money as originally expected, with shortfalls of $694,300 and $271,000.

TCU Place, which is one of the city’s corporations, had an approved deficit budget of $538,000, but a new three-year financial plan is expected to cut that down to about $100,000.

But even if finances continue to improve, city taxpayers shouldn’t get their hopes up for any possible rebates or property tax relief.

In the report, Smith recommended that any surpluses included in the final, year-end report be transferred into the city’s fiscal stabilization reserve.

Right now, the reserve has a balance of around $17 million. It’s typically used for unexpected shortfalls, one-time needs and future budget fluctuations.

Relief for Saskatoon taxpayers could be years away, as council also approved a 5.81 per cent property tax increase for 2027 during its budget deliberations last week.