News Releases

The City’s Administration and Arbutus have reached an agreement that allows for the potential development of 2775 Meadows Parkway in Rosewood to move forward. The agreement resolves the financial matters between the two parties while at the same time protects City infrastructure and the property of current and future residents.

The City Administration and Arbutus have continued working together throughout the past months and are pleased to have arrived at a mutually agreeable resolution of this matter.

The matter will be considered by City Council at its January 25, 2023 Public Hearing meeting.

Jeff Jorgenson
City Manager

S&P Global Ratings (S&P) has reaffirmed the City of Saskatoon’s credit rating with the highest rating possible, a ‘AAA’ credit rating with a “Stable” outlook. The City has maintained the ‘AAA’/Stable credit rating for twenty-one years since S&P first began affirming the City’s credit ratings in 2002.

“City Staff and City Council have worked hard over the years to ensure that prudent financial management and forward-thinking financial decisions are always top priority.  This endorsement by S&P once again confirms the City of Saskatoon’s financial management practices, economy and outlook as one of the strongest in the country,” says Clae Hack, Chief Financial Officer. “I’m confident the City’s prudent financial practices and our strong economy will continue to serve the City, residents and our business community well into the future.”

S&P notes “Saskatoon’s broad and diverse economy with a growing population will continue to support the City’s creditworthiness,” and also observes the City’s ability to  “maintain robust financial results that will support its capital plans, low debt, and exceptional liquidity.” As experienced by other Canadian municipalities, “Saskatoon benefits from an extremely predictable and supportive local and regional government framework that has demonstrated high institutional stability and evidence of extraordinary support in times of financial distress.”

“Maintaining the ‘AAA’ credit rating which includes a stable outlook, is important as it supports our confidence in our budgetary decisions, financial management and overall economic outlook for the City of Saskatoon,” adds Hack. “We continue to be a municipal leader and remain assured in our ability to minimize debt as we commit to priorities within the City’s 2022-2025 Strategic Plan and undertake long-term planning for infrastructure to support our great quality of life in Saskatoon.”

S&P states rationale contributing to the City’s strong credit rating within January 19, 2023, S&P Global Ratings Direct® Report:

• The City's “strong and prudent financial management is a key credit strength” and “the City’s management team is experienced and qualified to effectively enact fiscal policies and respond to external risks.”
• The City “demonstrates good political and managerial strength with its lengthy track record of passing budgets with minimal variations from budgeted revenues and expenses.”
• S & P views “management accountability as strong and financial policies as prudent. Management’s disclosure and transparency are good, and the city prepares robust annual budget documents.”
• “The City prepares multiyear operating and capital budgets for subsequent years, as well as long-term capital and borrowing plans. We believe that this supports fiscal transparency and discipline.”
• The City maintains “exceptional liquidity” and “debt is supported by high operating margins, which over five years exceed total direct debt outstanding, highlighting the small and manageable debt burden.”

Credit ratings are one of several tools that investors and lenders use when making decisions regarding an organization’s future financial strengths and weaknesses. For the City of Saskatoon, the ‘AAA’/Stable rating serves as an indication of the credit risk and ability to meet its financial obligations in full and on time. This also identifies the credit quality of the City’s debt issue and can translate into lower interest rates for favourable credit ratings since there is minimal or low risk associated with the City’s debt.

View the City of Saskatoon’s past documents on financial performance and credit rating history at saskatoon.ca.

The Governance and Priorities Committee of City Council (GPC) unanimously approved a process to find a private industry partner to oversee the management and operation of future downtown arena and convention centres. 

“Many municipalities that own event centres are moving towards private contracted management,” says Dan Willems, Director of Technical Services. “It’s nearly unheard of for a facility to move from private management back to public management.” 

Right now, SaskTel Centre is managed by a private company. The proposed option would mean, subject to successful procurement and contract negotiations with the preferred proponent, both future facilities could be managed by a single company but remain City-owned.  

This approach will enable the City to: 

• Negotiate a management agreement at a level playing field after receiving competitive bids from all qualified and interested parties; 

• Optimize and streamline governance structures of both facilities; and  

• Obtain the most favourable agreements for the City that will also elevate the new venues. 

Willems says that no third-party management firms will be given preferential treatment through the procurement process, adding that an independent Fairness Advisor will be brought on to monitor the process.  

“This will be a clean slate with the goal of obtaining the highest overall value for Saskatoon. We want to ensure any future management arrangement will maximize seat sales, profits and animation of the facilities, which will in turn create spinoff benefits to the surrounding Downtown area and entire community.” 

Securing a private partner to contribute capital funding towards the facilities will reduce the overall funding required to be secured from other sources.  

The next steps involve securing an Owner’s Representative to assist City Administration with preparing the Request for Qualifications and Request for Proposal documents for the private partner procurement. The Administration will be reporting back to GPC to outline the anticipated schedule for the procurement, in addition to seeking City Council’s endorsement of key elements and principles within the Request for Proposal prior to it being issued – likely in April or May. 

At today’s meeting of the City Council’s Governance and Priorities Committee (GPC), members debated various options to fund the activation of the Roadways Emergency Response Plan (Plan), which prompted city-wide snow grading and planned snow removal for every street following the December 2022 major snowfall. Snow grading and snow removal on local residential streets are not currently funded in the annual $14.8 million snow and ice management budget.

“To be clear, residents will not see an additional tax increase in 2023 related to the City’s ongoing city-wide snow response. The City will proceed with a borrowing strategy to fund the anticipated $20 million cost of the 2022/2023 response.  Further options will be brought back to City Council for a combination of dedicated property tax and deferral of capital funding for the 2024 budget deliberations to repay the borrowing and build a base for future emergency snow responses,” says Clae Hack, Chief Financial Officer.

 “Through this direction, it’s clear Committee members are committed to ensuring sufficient funding to enact the Roadways Emergency Response Plan when required while also trying to minimize the impact on taxpayers.”

The total cost of the December 2022 city-wide snow clean-up is estimated to be up to $20 million, about $6 million more than in 2020 because of more accumulated snow and higher costs of diesel fuel and equipment. 

The storm in November 2020 is the most recent event with similar snowfall at 30-40 cm and was the largest single snowfall event since January 2007. The Administration applied the lessons learned from the clean-up response to develop a comprehensive Roadways Emergency Response Plan (Plan). While it’s difficult to determine the frequency of large snow events requiring emergency response, with assuredness, more frequent and erratic weather events appear to be increasing globally. 

Find the full agenda from the January 17, 2023, Governance and Priorities Committee and the link to watch the archived video of today’s decision-making later this week at Agendas, Minutes and Meeting Video on our website.  

Members of City Council’s Governance and Priorities Committee (GPC) will discuss funding options following the activation of the Roadways Emergency Response Plan (Plan), which prompted city-wide snow grading and removal. The Plan was meant to be used in exceptional circumstances, but this undertaking has occurred twice since November 2020 because of extreme snowfalls. The Administration recommends City Council consider introducing a four-year property tax phase-in of 0.75 per cent for the 2024 to 2027 budgets. 

“A levy would not only repay the borrowing for the 2022 snow event but would also put money in a reserve to fund future responses,” says Clae Hack, Chief Financial Officer.  “Should the committee approve this recommendation, such a move would have the least impact on the City’s asset management programs and overall service levels that residents expect.” 

Snow grading and snow removal on local residential streets are not funded in the annual $14.9 million snow and ice management budget and are not in the level of service when it snows. However, the latest snowfall this December and the storm in November 2020, required immediate grading, followed by snow removal on every street.  

“Snow removal is a costly undertaking because it requires a variety of equipment, extra operators and lots of hauling costs,” says Hack. “However, it’s necessary to restore sightlines at intersections and the full width of driving lanes for safety reasons, and parking availability along streets.” 

The total cost of the clean-up this time is estimated up to be $20 million, about $6 million more than in 2020 because of more accumulated snow and higher costs of diesel fuel and equipment.  

The storm in November 2020 is the most recent event with similar snowfall at 30-40 cm and was the largest single snowfall event since 2007. The Administration applied the lessons learned from the clean-up response to develop a comprehensive Roadways Emergency Response Plan (Plan).  

On Tuesday, January 17, GPC will review four funding options: 

1. Use cash from reserves and deferral of capital projects like road maintenance;  
2. Repay borrowing by reducing reserve transfers to the Paved Roadway and Sidewalk Capital Reserves or others; 
3. Repay borrowing by making reductions to the 2024-2035 Major Capital Plan, which could impact proposed new and replacement Fire Halls, White Buffalo Youth Lodge Refurbishment/Replacement, Fleet Electrification (including Transit) or other priorities; and 
4. Create a dedicated property tax phase-in to build base for future events and repay borrowing.  

Find the full agenda for the January 17, 2023, Governance and Priorities Committee and the link to watch live at Agendas, Minutes and Meeting Video on our website.