2024/2025 Budget action plan: revised funding gap, numerous options to lower property tax
City Administration is set to deliver a group of reports that outline options for City Council to lower the projected 2024/2025 property tax funding gap. The reports are part of the 2024/2025 Multi-Year Budget process which began in March. The reports will be discussed at the July 25, 2023, Special Budget Meeting, which is the next in a series of meetings related to the 2024/2025 Budget.
At these Special Budget Meetings, Council will provide early direction and propose solutions to the Administration so that changes can be incorporated into the Preliminary Business Plan and Budget documents that Council will ultimately consider in November.
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.
“We have a new starting point for the fully transparent view of the City’s budgeting process. As part of this process, the Administration is tasked to estimate the funding the City would need to keep services at the same level as they are now for the next two years,” says Clae Hack, Chief Financial Officer. “With increased revenue-sharing expectations from the province and other adjustments, the prior released funding gaps of $52.4 million and $23.2 million are now $50.9 million and $21.7 million for 2024 and 2025.”
Hack says without intervention, the new starting funding gap would translate into a 17.33% and 6.25% property tax increase for 2024 and 2025, respectively.
“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 says.
“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. 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 civic Administration will present Council with several strategic options to help substantially decrease the City’s funding gap driven by inflation and other budgetary pressures.”
With a targeted goal to examine everything on the table line-by-line, to adjust and find savings throughout the organization and to help lower the funding gap, the Governance and Priorities Committee (GPC) plans to explore savings options within the following business lines on July 25 to scrutinize the expenses, revenues, and historical budget increases/allocations:
- Transportation
- Community Support
- Saskatoon Fire
- Environmental Health
- Taxation and General Revenue
- Land Development
- Arts, Culture and Events 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 GPC’s review.
The full AGENDA for the July 25, 2023, Special Budget Meeting is available for review. As with all, this meeting will be LIVE streamed, access LIVE VIDEO here.
Should any member of the public wish to submit a letter or request to appear in person at the July 25 Special Budget Meeting, the deadline to arrange for this is Monday, July 24, at 5:00 pm.
GPC will table its third Special Budget Meeting on August 15, 2023, at 9:30 a.m.
Visit saskatoon.ca/budget for more information.