City ends 2025 with strong utility surplus and a near-balanced operating budget

The City of Saskatoon (City) closed 2025 in a strong financial position with a surplus of $18.85 million within the Utility programs – a positive variance of 4.2 per cent for the City Utilities and maintaining a near-balanced operating budget for Civic Operations. There was a small operating deficit of $195,616, which is an overage of 0.03 per cent on the approved $663 million operating budget. A report outlining the Preliminary Year-End Financial Results as at December 31, 2025, will be presented to the Standing Policy Committee on Finance at its March 4, 2026, meeting.

“Our utility surpluses will help offset upcoming expenditures in the water and wastewater utilities, such as upgrading aging assets and supporting the construction of a new, second Water Treatment Plant,” says Kari Smith, Director of Finance. “The minor operating deficit shows the City kept overall spending very close to plan and delivered strong financial oversight throughout the year.”

Operating Budget Highlights

• Saskatoon Transit and Access Transit: $2.69 million surplus, mainly due to fuel rates being lower than expected.
• Waste Handling Services (Landfill): $1.51 million surplus driven by higher-than-expected revenues.
• Snow and Ice Management: $3.03 million deficit following eight snow events (including full residential street clearing in early 2025) and a total of 16 winter weather events throughout the season.

The Administration recommends covering the operating deficit with funds from the Fiscal Stabilization Reserve. If approved, this will leave $16.84 million in that reserve and $7.73 million in the Snow and Ice Management Contingency Reserve to help manage any future budget shortfalls.

City Utilities Highlights

• Water Utility: $8,076,885 surplus
• Wastewater Utility: $5,807,769 surplus
• Saskatoon Light & Power: $3,485,464 surplus
• Waste Services Utility: $1,168,114 surplus
• Storm Water Management Utility: $312,836 surplus

Together, these results reflect a 4.2% overall surplus across City utilities. Surplus funds will be transferred to their respective stabilization, capital or replacement reserves. The transfer of surplus funding into the capital reserves will help fund future Utility projects, including building a second Water Treatment Plant, and could reduce future borrowing or rate increase requirements. Details provided in Appendix 4 of the report.

The preliminary year-end results remain subject to the City’s annual external audit. The 2025 Annual Report will be released this summer.

The City of Saskatoon continues to hold a ‘AAA’/Stable credit rating, maintained for 24 consecutive years – reflecting Saskatoon’s strong and consistent financial management.

For more information, visit saskatoon.ca/budget