Rising to the Challenge: 2018 Preliminary Plan & Budget Delivers

The City of Saskatoon’s proposed 2018 Corporate Business Plan and Budget rises to this year’s fiscal challenges which include the fiscal headwinds of falling non-tax revenues and the pressure of population and community growth.

We have responded by:

• Controlling expenditures
• Maintaining services
• Continuing to invest in infrastructure
• Maintaining an open and transparent process

“The City of Saskatoon has demonstrated its ability to overcome fiscal challenges consistently in the past, and we are doing so again in 2018,” says CFO Kerry Tarasoff.

“The 2018 Preliminary Business Plan and Budget shows that even in light of the  significant loss of grants-in-lieu as a result of the 2017/2018 Provincial budget,  we have balanced citizens’ expectations -- with fiscal prudence.”

This year the City has total operating expenditures of $491.0 million. This is an increase of $13.3 million, or 2.8%, over the 2017 approved Operating Budget. This is the lowest year-over-year operating expenditure increase in the last decade.

“While other governments have had to implement service reductions to address their fiscal pressures, the City of Saskatoon’s proposed plan and budget maintains most services and even increases areas of need identified by citizens such as roadways, policing and snow and ice,” Tarasoff says.

The 2018 Proposed Business Plan and Budget continue to invest in our public infrastructure to sustain the high quality of life citizens expect.  A significant portion of the $295 million investment being made is for rehabilitation or replacement of some assets.  A variety of utility, transportation, recreation and land development projects are included in the plan.

Additionally, after extensive efficiency reviews and creative solutions from staff across our organization, we were able to reduce expenditures in 2018 and the potential impact on the property tax increase.

“The fact is that the City’s non-property tax revenues are declining as a share of its total operating revenue,” says Tarasoff.

These declining revenues, along with the estimated inflationary and growth pressures, have created a funding gap of approximately $14.1 million in 2018, which is proposed to be filled through $3.2 million in assessment growth and $10.9 million from a 4.96% property tax increase. 

Since its last public report however, the Administration has identified $825,000 in further reductions made possible from:

• Discontinuing a printed version of the City’s Annual Report to Citizens
• City bank deposits earning better interest
• A staff position in long range planning will continue to be funded from the planning levy in 2018
• Various smaller spending adjustments

Based on these changes, the revised property tax estimate could be 4.59% -- these adjustments will be considered during the 2018 Budget deliberations as well as other recommended service level adjustments coming from the various standing policy committees.

The City provides more than 70 programs and services to residents. To pay for the operation of these services the City collects money through five different sources: property taxes and non-tax revenue sources such as general revenues, government transfers, user fees and grants-in-lieu.  Less than half of the proposed 2018 Operating Budget comes from property taxes.

“We have worked diligently to keep this year’s property tax increase to the minimum by controlling our expenditures even when confronting population growth and inflation,” Tarasoff says.  

The preliminary business plan and budget is being tabled today but final budget deliberations will take place on November 27-29, 2017. 

View the 2018 Preliminary Budget at a Glance and find more information on property taxes and how the City’s annual budget process works at saskatoon.ca/financial future.