Shaping our Financial Future: Proposed Budget Increase Below 4%

Following extensive consultation and engagement with its citizens, the City is proud to release the 2017 Business Plan and Budget which aims at striking a balance between investing in key priorities while practicing good fiscal management and restraint. 

“The City of Saskatoon’s proposed 2017 Business Plan and Budget is focused on achieving what we heard through our public engagement process, namely increased road maintenance and snow and ice service,” says Chief Financial Officer, Kerry Tarasoff.  “While the City cannot satisfy the demands of all, we are very proud to say that this financial plan attempts to accomplish many of the important things that citizens told us in during the Shaping our Financial Future community engagement.”
To help pay for the City’s operations and to ensure the budget is balanced, the 2017 Business Plan and Budget proposes a 3.97% property tax increase.

The 2017 Operating Budget

Total operating expenditures of $481.4 million, an increase of $16.6 million, or 3.6%, over the 2016 approved Operating Budget.

Tax-supported-operating expenditures of $463.4 million for 2017, an increase of $18.4 million or 4.1%, over the 2016 approved Operating Budget.

Tax-supported operating expenditures represent 96.3% of total operating expenditures in 2017.

In 2017, 1% of the property tax is equivalent to $2.03 million. So, the proposed property tax increase for 2017 will generate an additional $8.1 million for the City’s Operating Budget. The additional property tax revenue that is collected will be distributed as follows:

• 0.55% or $1.1 million dedicated to snow and ice management
• 1.93% or $3.9 million dedicated to the maintenance of roadways.  The final year of the road levy will deliver $61.8 million to continue road improvements.
• 1.49% or $3.1 million allocated to pay for police, firefighters and other expenditures associated with all other programs and services.

The 2017 Capital Budget

In contrast to the City’s Operating Budget, the City’s Capital Budget provides the investments in hard infrastructure. This includes the construction of buildings (like recreation centres and libraries), transportation assets (like new roads and bridges), and neighbourhood infrastructure (like sidewalks and water lines).

For 2017, the City of Saskatoon is investing $261.4 million in various capital projects. This is an increase of approximately $32.7 million, or 14.3% over the 2016 approved Capital Budget.  This increase in capital programming is largely due to the City’s allocations under the Federal Public Transit Infrastructure Fund (PTIF) of $37.3 million and Clean Water and Wastewater Fund (CWWF) of $31.6 million.

What this means to residential property owners

The proposed property tax increase of 3.97% means that a homeowner who owns a single family detached home with an average assessment of $325,000 will see their municipal property taxes increase by $67.55 per year or $5.63 per month.  

“In supporting one of Canada’s great cities and vibrant economies, the City will to continue to deliver value to citizens,” Tarasoff says. “With thousands of new citizens joining us every year, providing quality services, vibrant facilities and properly maintained infrastructure is crucial to sustaining that energy.”

View the detailed 2017 Preliminary Corporate Business Plan Budget documents here.