Mid-year financials project a strong, balanced 2023 budget: restrictions to hiring, spending key
The City of Saskatoon is on track to deliver a balanced budget for 2023. The City’s 2023 Mid-Year Financial Performance Administrative Report will be presented to SPC Finance on September 6, 2023.
“In analyzing the mid-year forecast, we estimate that at the end of this fiscal year, the Administration will deliver a balanced budget for 2023,” says Kari Smith, Director of Finance. “Our mid-year forecast is based on the most current information known to the Administration at the time of preparing this report.”
Each year, the City of Saskatoon’s Administration provides the mid-year, third-quarter and year-end reports to the Standing Policy Committee on Finance (SPC Finance) on the fiscal performance of the City’s Business Plan and Budgets. The goal of this financial reporting is to keep City Council and residents informed on the City’s financial performance as the year progresses.
Importantly, City Administration forecasts that $4.9 million will be saved through ongoing spending restrictions. These forecast savings, combined with projected underspending of $3.5 million in Snow and Ice and additional revenues of $2.5 million in Transit/Access Transit’s operating budget, are anticipated to help offset the 2023 Budget’s known financial pressures and any other forecasted shortfalls.
Details of the 2023 Budget variances are included in Appendix 1 - 2023 Year-End Projections by Business Line. Note, that the year-end figures are based on projections and estimates, and some have a high degree of volatility.
“While these mid-year financial figures are preliminary and based on data available at this time, Administration will continue to follow existing spending restrictions to minimize the potential for a year-end deficit,” adds Smith. “We continue to tightly monitor all discretionary spending and keep to our hiring restrictions which have been in place since 2020. We will, of course, balance these measures with the need to continue providing good value in the delivery of all civic services to the residents and businesses we serve.”
Additional key information/ results from the mid-year financial reporting:
- Utilities are projecting a $5.3 million net surplus at mid-year. Any utility variance will be offset through transfers to or from the applicable stabilization reserves, if this surplus is realized, contributions will be made to the respective reserves.
- The City continues to experience inflationary impacts in 2023 including increased costs on contracts. The City can stay within budget by decreasing the amount of work to be completed.
City Administration will provide the next 2023 financial performance report through its third-quarter projections in November 2023.
Visit saskatoon.ca/budget for more information on the City's multi-year budget planning process.