Editor’s Note: A previous version of this story incorrectly stated the extent of the property tax increase. The city council settled on 3.93 percent.
november 29 is the second day Saskatoon City Council budget meetings.
Information was given on the topics of property tax on Monday affordable housing revenue and the Saskatoon Police Service with the intention of adjusting the budget for these areas.
The 2023 business plan and budget was created in 2021 and was based on projections for expenditures and revenues at that time, including the loss of revenue from the impact of COVID-19.
However, due to inflation, the city has continued to pay higher costs for fuel, natural gas, materials, supplies and labor.
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“This year has brought significant challenges for individuals, businesses and the City in the context of unexpected inflationary pressures,” said Clay Hack, Chief Financial Officer.
“These pressures, along with the already ambitious City budget target, require consideration for adjustments to be made to ensure our service levels and resources are maintained. As such, the Administration is committed to maintaining City service levels and ensuring properly resourced is proposing several adjustments to the initially approved 2023 budget for
A proposed budget adjustment for the 2023 operating budget would provide more than $10.04 million in additional resources to combat the cost of rising inflation and raise property taxes to 3.93 percent.
On Monday, the City Council discussed a new mill rate increase of $100,000 and a capital contribution of $300,000 to the Affordable Housing Reserve.
On Tuesday, the city council approved the administration’s recommendation and will move forward with budget adjustments.
The City Council also approved a budget adjustment of a one-time contribution of $95,000 to SPCA Pound Services to assist with the transfer of animals from the pound to shelter services.
Randy Donner proposed lowering the assumption on the cost of gas and diesel by 10 cents per liter, which would result in savings of approximately $700,000.
“Gasoline and diesel is a very volatile market right now, so it’s hard to say with certainty how much risk there will be,” Hack said.
“But if we experience a similar volatility next year, we will be pretty close to what we experienced with a 10 percent reduction.”
The previous assumption for 2023 was $1.23 per liter for gas and $1.29 per liter for diesel.
The fuel expense of more than $1.1 million represents a total city expense change of more than $10 million.
The city’s current deficit sits at $2.26 million, meaning the momentum will help balance the books.
The vote on the donor’s motion was unanimous.
, With files from Easton Ham.
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