The news from city hall landed with a thud this week across Saskatoon’s kitchen tables and coffee shops. Homeowners and small businesses are bracing for a financial gut-punch that’s been months in the making but no less painful upon arrival.
Saskatoon residents face potential property tax increases of 9.9 per cent next year and 7.34 per cent the following year, according to the city’s latest financial forecast presented to council. These aren’t just numbers on a page – they represent hundreds of extra dollars coming out of household budgets already stretched thin by inflation.
“We’ve got some difficult decisions ahead,” Mayor Charlie Clark acknowledged during Monday’s governance and priorities committee meeting. His understatement captures the tension between maintaining services and keeping taxes manageable for residents who’ve seen their grocery and utility bills climb steadily.
The proposed increases would translate to roughly $219 more in property taxes for the average homeowner next year, based on a home assessed at $344,000. For many families, that’s a monthly grocery trip or winter heating bill.
Behind these increases lies a complex web of financial pressures. The city faces a projected $21.7 million operating deficit in 2024, driven by inflation, decreased revenue from traffic violations, and significant challenges in waste management operations.
Kerry Tarasoff, the city’s chief financial officer, didn’t mince words in his presentation to council. “These are pretty significant tax increases,” he admitted, noting the administration would work to find efficiencies to potentially reduce the projected increases before the final budget deliberations in November.
What’s particularly concerning for many community advocates is that these increases come despite $5.9 million in cuts already planned for 2024. These reductions will affect transit service, park maintenance, road repairs, and other public services that residents rely on daily.
At the Saskatoon Food Bank, executive director Laurie O’Connor sees the downstream effects of these financial pressures. “When families face higher housing costs through increased property taxes – whether directly as homeowners or indirectly through rent increases – we see it reflected in food bank usage,” she told me during a community forum last week. “People have to choose between paying bills and buying groceries.”
The city isn’t alone in facing these challenges. Municipalities across Saskatchewan are grappling with similar financial strains after provincial funding formulas changed and inflation drove up the cost of everything from asphalt to employee benefits.
Ward 3 Councillor David Kirton expressed frustration shared by many on council: “We’re trying to thread a needle between maintaining services people expect and keeping tax increases manageable. There’s no easy answer here.”
The reality is that Saskatoon’s growth has outpaced its revenue sources. While new neighbourhoods mean more property tax revenue, they also require more services – snow clearing, police patrols, garbage collection – often at a cost higher than the taxes they generate.
The Saskatchewan Urban Municipalities Association (SUMA) has been advocating for changes to how cities are funded. In a recent policy paper, they noted that municipalities receive just 8 cents of every tax dollar while being responsible for over 60 per cent of public infrastructure.
For small business owners like Janet Schmidt, who runs a family bakery in Nutana, these increases compound other rising costs. “First it was flour prices, then electricity, now property taxes. At some point, we have to pass these costs on to customers, but how much can people pay for a loaf of bread?” she wondered.
The timing couldn’t be worse for many households. Statistics Canada reported last month that Saskatchewan’s consumer price index increased 3.1 per cent year-over-year, higher than the national average. Housing costs, in particular, continue to rise faster than wages for many residents.
City councillors will review the preliminary budget in more detail next month, with final deliberations scheduled for November 27-29. Several have already indicated they’ll be looking for further cuts to bring the tax increase below the projected levels.
Councillor Cynthia Block suggested the city might need to “pause some capital projects” to ease the immediate pressure on operating funds. This could mean delaying infrastructure improvements or facility upgrades to keep essential daily services running.
Community activists are organizing ahead of these deliberations. The Saskatoon People’s Budget Coalition has scheduled town halls across the city to gather resident input on budget priorities. “People understand difficult choices need to be made,” explained coalition coordinator Maria Thompson. “But they want a voice in those decisions.”
As Saskatoon navigates these financial challenges, the debates at city hall reflect larger questions about what services residents expect and what they’re willing to pay for them. The answers will shape not just tax bills but the character of the city itself for years to come.
For now, residents can only wait for the final numbers and perhaps start making room in their household budgets for the increases that seem all but certain to come. As one homeowner put it during the public commentary portion of Monday’s meeting: “We’re not asking for frills – just the basics at a price we can afford.”
