The City recently identified a significant funding gap for the upcoming 2024 and 2025 budget. This gap was identified as a part of our budgeting process and is not an indication of the final property tax impact for 2024 or 2025. Nor does this funding gap impact the 2023 budget.
With that being said, we are clearly in a challenging position, mainly due to inflationary costs rising by 30%. More than half of the funding gap is driven by inflation. Some examples of these pressures include:
- the City is experiencing 30 per cent increases in contracts to maintain the roadway treatment cycle;
- Saskatoon Light & Power has experienced an increase of 33 per cent in material prices, and
- the Saskatoon Fire Department has had fire engine costs increase from $900,000 to $1.5 million for a new apparatus unit – a 60 per cent increase.
Other significant factors include:
- base budget adjustments: this includes COVID-related expenditures that have not returned to pre-pandemic levels. Furthermore, a negative contingency or global reduction that has been added to the budget over the years needs to addressed.
- growth: this includes linear and step growth and includes preparing for future East Leisure Centre, fire halls, transit expansion and emergency snow response.
To address these pressures City Council directed Special Budget Meetings be established to go through each budget line. This approach uses both Administrative and Council perspectives to make intentional decisions about funding and service levels. As many of these decisions have impacts on services, I want to ensure everyone has time to review the recommendations and provide me with their feedback. All decisions made at this meeting will lead to the creation of the 2024 and 2025 budget, with final decisions being made during Budget Deliberations on November 28 - 30, 2023. Please do not hesitate to get in touch and share your feedback at any point in this decision making process.
This post summarizes the decisions before Committee at the July 25, 2023 Special Budget Meeting. Please note the full agenda is available here.
2024/2025 Budget Inflationary & Phase-in Decisions
Administration has recommended Option 2, which includes:
- Saskatoon Light & Power Return on Interest (ROI) - fund at 100% of current funding plus 25% of the projected inflationary requirements plus 100% of the added growth impact. Remaining inflationary will be planned to be phased in over 5 years or reassessed if inflationary pressures subside. This equals a reduction of $2,475,000 in 2024 and spending $495,000 in 2025.
- Roadway Preservation - fund at 100% of current funding plus 25% of the projected inflationary requirements plus 100% of the added growth impact. Remaining inflationary will be planned to be phased in over 5 years or reassessed if inflationary pressures subside. This equals a reduction of $7,650,000 in 2024 and spending $1,530,000 in 2025.
- Saskatoon Fire Apparatus - fund at 100% of current funding plus 25% of the projected inflationary requirements plus 100% of the added growth impact. Remaining inflationary will be planned to be phased in over 5 years or reassessed if inflationary pressures subside. This equals a reduction of $577,500 in 2024 and spending $115,500 in 2025.
- Civic Buildings Comprehensive Maintenance Reserve (CBCM) - fund at 100% of current funding plus 25% of the projected inflationary requirements plus 100% of the added growth impact. Remaining inflationary will be planned to be phased in over 5 years or reassessed if inflationary pressures subside. This equals a reduction of $2,014,500 in 2024 and spending $402,900 in 2025.
- Fuel Estimates - $0.15/L reduction of fuel/diesel estimates in 2024 and 2025. This equals a reduction of $1,050,000 in 2024 and reduction of $1,050,000 in 2025.
- Saskatoon Fire Station Phase-in - reduce the 2024/2025 planned phase-in of $1.26M by 100% and add it back to the operating budget when the station opens in 2026. This equals a reduction of $1,225,000 in 2024 and reduction of $1,225,000 in 2025.
- Transit Future Service Phase-in - reduce the 2024/2025 planned phase-in of $208,500 by 100% and add to the operating budget when the Transit Service is required. This equals a reduction of $208,500 in 2024 and reduction of $208,500 in 2025.
- East Leisure Centre Operating Phase-in - reduce the 2024/2025 planned phase in of $600,000 by 100% and add it back over 5 years beginning in 2026. This equals a reduction of $600,000 in 2024 and reduction of $600,000 in 2025.
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Snow & Ice Phase-in - reduce the 2024/2025 planned phase in of $1.61 million by 50% and allocate it towards repaying the 2022 Emergency Snow Event over ten years. This equals a reduction of $805,000 in 2024 and reduction of $805,000 in 2025.
- With this item, I expect further discussion or consideration of an option to also start building up a base budget towards future snow events.
- Transit Bus Growth - reduce the $1.8 million allocation for Transit Bus Growth by 100% in 2022 and continue to rely on Federal Funding and aging buses for growth requirements. This equals a reduction of $1,800,000 in 2024.
- Negative Contingency - reduce the $3.9 million phase out of the Negative Contingency/Targeted Savings in 2024 by 50% ang phase that amount over 3 years beginning in 2026. This equals a reduction of $1,939,600 in 2024.
If all these recommendations are accepted as is, this would reduce the 2024 funding gap by $20,375,100 and the 2025 funding gap by $1,375,100.
The full report is available here.
Transportation Business Line Information
Transportation includes the following business lines: Access Transit, Bridges and Overpasses, Engineering, Impound Lot, Parking, Road Maintenance, Snow and Ice Management, Street Cleaning and Sweeping, Street Lighting, Transit Operations, and, Transportation Services.
Administration is recommending the following three options:
- Option 1 – Increase Parking Rates by $0.50/hour
- Option 2 – Implement Parking App Fees
- Option 3 – Reduce City Yard Security Funding
If these three options were approved as is, this would reduce the 2024 funding gap by $659,000.
Other options available for consideration:
- Option 4 - Defer Contribution to the Bridge Reserve
- Option 5 – Defer New Property Tax Funded Positions
- Option 6 - Reduce Snow and Ice Management Program Inflation
- Option 7 – Reduce Street Cleaning and Sweeping Inflation
- Option 8 – Reduce Saskatoon Transit Operation Expenditures
- Option 9 – Increase Saskatoon Transit Revenues
- Option 10 – Reduce Transportation Services Inflation
- Option 11 – Reduce Service Level of Back Lane Maintenance
- Option 12 – Reduce Snow and Ice Management Service Levels
- Option 13 – Delay or Eliminate Street Sweeping
- Option 14 – Eliminate Seasonal Decoration Program or Replacement Program
- Option 15 – Adjust Saskatoon Transit Service Levels
- Option 16 – Expand Parking Pay Station Zone
If all 16 options were approved as is, this would reduce the 2024 funding gap by $4,663,300 and the 2025 funding gap by $905,700.
The full reports are available here.
Community Support Business Line Information
Community Support includes the following business lines: Animal Services, Cemeteries, Community Development, and Community Investments and Supports.
Administration is recommending the following two options:
- Option 1 – A further 10% increase in all pet licenses
- Option 2 – A further 3% increase to Cemetery Rates and Fees
If these two options were approved as is, this would reduce the 2024 funding gap by $110,000 and the funding gap in 2025 by $30,000.
Other options available for consideration:
- Option 3 – Various Reductions to Community Grants and Investments
- Option 4 – Various Reductions to Cemetery Operations/Budget
- Option 5 - Reductions to other Donations, Grants and Subsidies
- Option 6 – Reductions to Economic Incentives
If all 6 options were approved as is, this would reduce the 2024 funding gap by $529,500 and the 2025 funding gap by $121,300.
The full reports are available here.
Saskatoon Fire Business Line Information
Saskatoon Fire includes the following business lines: Fire Services and Emergency Management.
Administration is recommending the following two options:
- Option 1A – Defer the Fire Services Asset Management Position
- Option 1B – Defer the Communications Consultant
If these two options were approved as is, this would reduce the 2024 funding gap by $256,000.
Other options available for consideration:
- Option 1 – Deferral of New Property Tax Funded Positions
- Option 2 - Reduce a Fire Bylaw Inspector Position
- Option 3 – Reduce a Firefighter Position
If all 3 options were approved as is, this would reduce the 2024 funding gap by $599,700.
The full reports are available here.
Environmental Health Business Line Information
Environmental Health includes the following business lines: Sustainability, Urban Biological Services, Urban Forestry, Waste Handling Services and Waste Reduction.
Administration is recommending the following four options:
- Option 1 – Closure of East Compost Depot
- Option 2 – Reduce Operating Hours by 1 hour per day at Landfill and Material Recovery Centre
- Option 3 - Eliminate Skunk Inspection, Trapping and Relocation Services for Private Residential Properties
- Option 4 - Reduce Mosquito Control Treatment Area to a 1km to 2km buffer
If these four options were approved as is, this would reduce the 2024 funding gap by $256,000.
Other options available for consideration:
- Option 5 – Discontinue Christmas Tree Drop-off Sites
- Option 6 – Further adjustments to Operating hours at Landfill and Material Recovery Centre
- Option 7 – Reduced Tree Planting
- Option 8 – Extension of Tree Pruning Cycle
- Option 9 – Eliminate GHG Management Software
- Option 10 – Eliminate Healthy Yards and Boulevards Garden Program Advertising and Support
- Option 11 – End Student Action for a Sustainable Future program contribution
If all 11 options were approved as is, this would reduce the 2024 funding gap by $676,600 and the 2025 funding gap by $72,000.
The full reports are available here.
Taxation and General Revenues Business Line Information
Taxation and General Revenues includes the following business lines: revenue from the Municipal Revenue Sharing Grants, grants-in-lieu, fines and penalties, property taxes as well as other general revenue.
Administration is recommending the following four options:
- Option 1B – Phase out of the $100,000 Interest Stabilization support over two years
- Option 2 – An increase of $5.00 for the Manual Tax Certificate/Tax Search Fees and a $10 increase for the Online Tax Certificate/Tax Search fees
- Option 3 – A 0.25% increase in the City’s Current and Arrears monthly Property Tax Penalty Rates
- Option 4 – An increase to Parking Ticket Penalty Amounts of $50 to $70 for late pay penalties and $30 to $40 for the reduced penalty rate for parking offences related to parking in a pay parking area where purchased time has expired
If these four options were approved as is, this would reduce the 2024 funding gap by $1,316,000.
The full reports are available here.
Land Development Business Line Information
Land Development includes the following business lines: Saskatoon Land.
Administration is recommending the following option:
- Option 1 – A $200,000 increase to the City’s Land Lease Revenue Budget to account for signed but potentially temporary lease revenue
If this option was approved as is, this would reduce the 2024 funding gap by $200,000.
Other options available for consideration:
- Option 2 – Reductions to Land Maintenance Expenditures
- Option 3 – Additional Billboard Locations
If all 3 options were approved as is, this would reduce the 2024 funding gap by $725,000.
The full reports are available here.
Arts, Culture and Events Venues Business Line Information
Arts, Culture and Events Venue includes the following business lines: the City’s contributions to TCU Place, SaskTel Centre and Remai Modern. The operational revenues and expenditures of each venue are not included and are managed by each individual entity.
Administration is recommending the following option:
- Option 1 - Reduce the phase-in of the CBCM contribution for Remai Modern by $41,000 in 2024 and reassess in future budgets.
If this option was approved as is, this would reduce the 2024 funding gap by $41,000.
Other options available for consideration:
- Option 2 – Operating Grant Changes
If all 2 options were approved as is, this would reduce the 2024 funding gap by $41,000. Option 2 would require further discussion with the respective Administrations.
The full reports are available here.
Supplementary Information
A report was prepared comparing Saskatoon's FTEs to other municipalities. The full report can be found here, but in short it concludes:
- Saskatoon’s Property Tax Supported FTEs of 10.3/1,000 persons, as well as Saskatoon’s Property Tax Supported FTEs plus Capital FTEs of 11.5/1,000 persons, are in line with or lower than many comparable municipalities; and
- Saskatoon’s FTEs per Capita (Per 1,000 Persons) have steadily decreased since 2016. For example, Civic Operations (Tax Supported Less Police) in 2016 had 7.95 FTEs/1,000 persons whereas in 2023 it is estimated to be 7.68/1,000 persons.
A report was also provided on the temporary workforce at the City of Saskatoon. This can also be found here.
Finally a report showing spending from the City of Saskatoon, Province of Saskatchewan and Government of Canada was provided. While each order of government has a different area of focus, it shows the City consistently spending growth is lower than the other two orders of government. Furthermore, in real per capita terms City operating expenditures have declined by 9.7% over the period of 2017-2023. More information is available here.