City of Saskatoon proclaims near-balanced operating budget to end year

A utility surplus and a near-balanced operating budget are the highlights of the City of Saskatoon’s year-end fiscal report.

In a release from the city, it touted a surplus of $18.985 million within its utility programs and maintaining a near-balanced operating budget for civic operations.

The city called it a positive variance of 4.2 per cent for city utilities.

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It noted a small operating deficit of $195,616, an overage of 0.03 per cent on the approved $663 million operating budget, according to the city.

The preliminary year-end financial results for the city will be presented in the form of a report to the Standing Policy Committee on Finance at its Mar. 4 meeting.

Kari Smith, director of finance for the city, said the utility surpluses will help offset upcoming expenditures in water and wastewater utilities. In the release, she noted the upgrading of aging assets and the construction of a new, second water treatment plant as possible expenses the surplus could contribute towards.

“The minor operating deficit shows the City kept overall spending very close to plan and delivered strong financial oversight throughout the year,” Smith said.

Highlights of the operating budget last year included a $2.69 million surplus in Saskatoon Transit and Access Transit, attributed to lower fuel rates than expected; a $1.51 million surplus in waste handling services (landfill) from higher-than-expected revenues; and a $3.03  million deficit in snow and ice management after eight snow events and 16 total winter weather events throughout the season.

City administration recommended covering the operating deficit with funds from the Fiscal Stabilization Reserve. That would leave $16.84 million in the reserve, if approved, and $7.73 million remaining in the city’s Snow and Ice Management Contingency Reserve to help manage any future budget shortfalls.

Surpluses in city utilities were broken down into water ($8,076,885 surplus), wastewater ($5,807,769 surplus), Saskatoon Light & Power ($3,485,464 surplus), waste services ($1,168,114 surplus) and storm water management ($312,836 surplus).

Cumulatively, the city said these numbers reflect a 4.2 per cent overall surplus across city utilities.

Surplus funds, the city explained in its release, will be “transferred to their respective stabilization, capital or replacement reserves,” with the transfer of surplus finds into capital reserves helping to fund future utility projects. The city said this could help lower future borrowing or rate increase requirements.

For 24 consecutive years, the City of Saskatoon has held an ‘AAA’ stable credit rating, which it said reflects “Saskatoon’s strong and consistent financial management.”

The 2025 annual report will be released by the city this summer, with preliminary results for the end of the year subject to the city’s’ annual external audit.