City Council finalizes 2023 Budget: invests in affordable housing, maintains service levels, finds savings

After two days of deliberations, Saskatoon City Council concluded its 2023 Budget review November 29, 2022, to finalize the City’s operating and capital budgets, boards, commissions and utility budgets for this second year of the 2022/2023 Multi-Year Business Plan and Budget cycle. The 2023 Operating and Capital Plan was prior approved in principle in 2021 but required formal approval by City Council at the 2023 Budget deliberations as per the Council Policy.

“Every year, Council deliberates the budget to bring in the lowest property tax rate, especially when we know times are tight for everyone.  We were able to bring down the proposed tax increase in 2023 from 4.38% to 3.93%,” says Mayor Charlie Clark. “We continue to recover from the challenges brought on by the pandemic and are now facing some of the highest inflationary pressures in generations. This strategic budget balances the need to be as prudent as possible and ensures we are providing the core services that residents rely on.”  

For a homeowner with a single-family detached home with an average assessed value of $344,000, the 3.93% municipal property tax increase equates to $6.53/month or $78.34/year in 2023.

To account for rising costs and global inflation the City is facing, Administration had recommended several adjustments to the 2023 Budget which resulted in a proposed property tax rate of 4.38%. This was the tax rate to maintain and deliver the existing service levels to the community and to ensure the City’s resources remained aligned for 2023. City Council has the flexibility in year two of the budget cycle to make any necessary budgetary corrections for events or circumstances requiring funding or resource adjustments.

City Council directed $1,640,000 be transferred from the Reserve for Capital Expenditures (RCE) to the Fiscal Stabilization Reserve and made the following adjustments to reduce the 2023 municipal property tax rate:

• $700,000 reduction to the corporate fuel increase assumptions
• $500,000 deferred reduction to the Return on Investment received from Saskatoon Light & Power
• Council deferred an $83,600 contribution to the Transit Vehicle Replacement Reserve which was possible because of a recent $6.5 million commitment in 2022 to fleet renewal as part of a comprehensive fleet asset management strategy approved by Council in 2022
• $68,700 reduced from the contribution to the Reserve for Major Special Events

2023 Budget adjustments and approvals:

• City Council increased ongoing operating funding of $100,000 to the Attainable Housing Program as well as provided one-time funding of $550,000 from dividends declared from the City’s Neighbourhood Land Development Fund
• Additional funding of $245,000 was also allocated to develop a Housing Strategy which will include Housing Needs Assessment, Best Practices Review and Engagement  
• $160,000 allocated from Reserves toward Heritage Program Updates
• $95,000 to fund a one-time operating contribution for a Shelter Services Support Grant to the SPCA
• Curbside Organics Program fee of $6.73 monthly per roll-out cart for green cart organics collection starting in spring 2023

“For the 2023 Budget, we’ve made important investments to address the escalating crisis of homelessness in the city and the growing need for affordable housing,” adds Mayor Clark. “City Council has allocated funds to work with housing providers to get more units built and to increase our capacity to work strategically with our community partners on coordinated housing solutions and extreme weather strategies.”

The City of Saskatoon wishes to thank all residents, organizations and business owners in Saskatoon who wrote in or spoke to City Council at budget deliberations, or in the weeks leading up to budget review. Public feedback through engagement is valued throughout the year.

The finalized 2023 Budget document will be made available on the City’s website at saskatoon.ca/budget once completed.