City Council set to deliberate proposed adjustments to the 2023 Budget
Today, City Administration released a detailed administrative report providing City Council with its proposed adjustments to the 2023 Budget. The 2023 Budget was preliminarily approved by City Council on November 29, 2021, as part of the City’s Multi-Year Budget.
The assumptions used to create the 2023 Business Plan and Budget in 2021 were based on the Administration’s estimate of revenues and expenditures at the time, including the recovery of lost revenues due to the impact of COVID-19. The financial landscape for the City in 2023 has changed significantly since the forecasted revenues and expenditures were developed in 2021. The City has continued to incur higher costs for fuel, natural gas, materials, supplies and labour – leading to significant changes to the assumptions and estimates used to produce the original 2023 Plan.
“This year has brought forward significant challenges for individuals, businesses and the City in terms of unforeseen inflationary pressures, which we expect to persist into 2023. These pressures, coupled with an already ambitious City budget target, require consideration for adjustments to ensure our service levels and resources are aligned,” says Clae Hack, Chief Financial Officer. “As such, the Administration is proposing several adjustments to the preliminary approved 2023 Budget to ensure the City’s service levels are maintained and resourced appropriately.”
“We recognize the financial pressures that individuals and businesses are already under within Saskatoon, however, in order to deliver the existing service levels these adjustments are required,” adds Hack. “As always, Administration remains committed to prudent financial management and continuing to find savings where we can. This is evidenced by the $5.7 million in targeted savings within the 2023 Budget and the approximately $600,000 in identified options Council can consider for reducing the property tax increase in 2023.”
If approved by Council, the proposed budget adjustments to the 2023 Operating Budget would provide more than $10.04 million in additional resources, which will be mostly used to combat rising prices in fuel, natural gas and other inflationary pressures. This increase in costs is offset by a nearly $7.76 million increase in revenues, leaving a $2.29 million gap to be filled by the property tax. Based on these changes the preliminarily approved property tax increase of 3.53% is recommended to increase to 4.38%. For a homeowner with an average assessed value of $344,000, the proposed 2023 tax rate would result in an additional $7.28/month or $87.30/year.
Proposed budget adjustments to the 2023 Capital Budget would increase it by $37.4 million. Most of these expenses are related to land development projects which are primarily funded through development levies and reserves. City Council may choose to increase or decrease the amounts of the operating or capital budgets for any item presented earlier or for other items it would like to bring forward.
City Council will also review and make its final decisions on the Board of Police Commissioners 2023 Operating Budget and Capital Budget, and the upcoming Curbside Organics 2023 Rate. Deliberation on all proposed budget adjustments and formal approval of the 2023 Operating and Capital Budgets and Business Plan will take place November 28, 29 & 30, 2022, in Council Chambers starting at 1 p.m.
For citizens interested in registering to provide comments or to speak to City Council at budget deliberations, please use the Submit a Letter/Request to Speak to Council form. Registration will be open as of 5 p.m., Wednesday, November 23. The deadline to submit your online form is Monday, November 28, 2022, at 10 a.m. For questions, please email city.clerks@saskatoon.ca or contact the City Clerk’s Office at 306-975-3240.
Visit saskatoon.ca/finance for more information on the multi-year budget process, timeline of prior decisions/events or to review budget-related documents.