Canada/City of Saskatoon proposes 7% property tax increase in 2024

In its preliminary budget tabled Monday, the City of Saskatoon is proposing a property tax increase of 7.14% in 2024. This would represent an annual increase of $148 for the average household. For 2025, property taxes could increase by 5.7%.

The City of Saskatoon indicates that these increases are necessary to support the financing of City operations while trying to ensure a balanced budget.

The proposed property tax increases could generate $21 million in 2024 and $18 million in 2025 for the City's operating budget.

Spending to maintain and improve services

The City of Saskatoon is also seeking increases in its operating budget for the next two years,

In 2024, it proposes an operating budget of $638.5 million, representing an increase of 6.06%. For 2025, the budget would be $657 million.

The City of Saskatoon explains that these proposed increases depend on several factors.

On the one hand, inflation increases the cost of maintaining existing services. In addition, salaries, increases in mandatory contracts with contractors and suppliers, and utility rates all add to the bill.

The City claims that 2023 was marked by inflationary pressures that sometimes reached 30% increases on certain services and materials. The 2023 budget did not provide sufficient funding to meet these pressures, which were initially estimated at between 2% and 3%.

To avoid falling into this trap again, the city anticipates higher-than-normal inflation increases in 2024, and wants to take steps to ensure that infrastructure and road services are maintained.

In addition, as the population grows, the city foresees the need to expand access to certain services. For example, new neighborhoods need access to public transit services, street maintenance and garbage collection.

The preliminary budget notes that, without the proposed increase in the operating budget, the City of Saskatoon would not be able to maintain its current level of services.

This preliminary budget is subject to change. City Council will meet to deliberate on the final budget on November 28, 29 and 30.

Source: /ici.radio-canada.ca/