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Saskatoon has some of the lowest municipal property tax levels in Canada due to its prudent fiscal management and relatively diverse revenue mix.  In 2024 for example, a residential property owner would pay about $6.35 for every $1,000 of assessed value while non-residential properties would pay about $10.35 for every $1,000 of assessed value.

Saskatoon is among the very few cities that set an explicit tax ratio as the preferred approach to distribute the tax burden between residential and non-residential properties needed to fund City services. The current Tax Ratio Policy in Saskatoon, first approved by City Council in 2017 and maintained in 2021, set a tax ratio of 1.59 to 1 (or 1.63 to 1 after including commercial appeal contingency). This means that for every $1.00 in property tax paid by a residential property owner, a non-residential property owner paid $1.63 on an equivalent assessed value.

“It’s important to note that the City does not collect any additional property tax revenue because of reassessment or tax policy decisions such as the tax ratio. These changes and decisions result in a redistribution of the overall property tax shared amongst property owners,” says Clae Hack, Chief Financial Officer. “While individual properties may be impacted with property tax increases or decreases, overall, no new property tax revenue is generated from these changes and decisions for the City. In other words, the tax pie stays the same size but the way the pie is divided is what shifts.”

After the provincially legislated 2025 Reassessment, the Standing Policy Committee (SPC) on Finance on February 5, 2025, was briefed on the changes to property values, notably that residential properties assessed value in Saskatoon increased by 13%, on average, while assessed values for non-residential properties decreased, on average, by 2%. These results are reflective of the market conditions as of January 1, 2023.

Due to the relative increase in residential property values and a relative decrease in non-residential property values from the 2025 reassessment, the property tax ratio would have to adjust to collect the same amount of tax revenue from both residential and non-residential sectors.  To achieve this, a ratio of 1.88 to 1, the revenue neutral ratio, would be required to maintain the same distribution of the municipal property tax burden for both property classes.

As outlined in the report heading to the March 5, 2025, SPC on Finance meeting the Administration is recommending a tax ratio of 1.75 to 1.  Some of the reasons this ratio is being recommended include:

1. Splitting the difference between the existing ratio of 1.63 (including commercial contingency) and the revenue neutral ratio of 1.88 acknowledges the shifts in value the City is seeing between residential and non-residential from reassessment while at the same time offers some level of smoothing to avoid significant shifts between the classes;
2. This decision is consistent with past Council decisions where the City has lowered the ratio from 2.41 in 1998 to 1.63 in 202, when the City was seeing larger commercial value increases as compared to residential.  In this reassessment cycle, as residential values are seeing larger increases than non-residential values, it is consistent to have a corresponding movement in the ratio to minimize significant shifts as in the past;
3. At a 1.75 ratio, Saskatoon will continue to have one of the lowest property tax ratios and rates in western Canada, the city would maintain a competitive edge in terms of non-residential property taxes ; and
4. Even with an increase in the ratio to 1.75, many non-residential properties within Saskatoon will see a decrease in their property taxes. In 2024, the City collected 32% of its total property tax revenue from non-residential properties; with the proposed recommendation of a 1.75 ratio, this will fall to 30.7% in 2025.  This means that overall, the City will collect less from non-residential properties in 2025 than it did in 2024.  As 1.88 is the revenue neutral ratio, anything below this amount will still see a shift from commercial properties to residential.

At the SPC Finance Committee’s next meeting on March 5, 2025, Committee will be presented with five tax ratio approaches/options for consideration. The options presented by Administration differ in terms of property tax implications for the various property classes. There will be some trade-offs if Council decides to redistribute the municipal property tax burden amongst property classes. Council will review all tax ratio policy options presented, including Administration’s recommendation to adopt Option 3, which sets the non-residential (commercial) to residential tax ratio at 1:75 to 1 for the years 2025-2029. As noted, a 1.75 to 1 tax ratio would still be among the lowest in Western Canada, and the effective tax rate on non-residential would also remain one of the lowest in Canada.

“There is no perfect answer to what the City’s tax ratio should be,” Hack adds. “There are multiple considerations that go into this decision including the impact of the 2025 reassessment, how competitive Saskatoon’s residential and non-residential property tax rates are compared to other major western Canadian cities and overall principles around how much each property class should contribute to the City’s operational requirements. Overall, I am confident Committee will consider all implications to make its best decision.”

Visit saskatoon.ca/propertytax

7th Avenue will be closed between 33rd and Empress streets on Friday, February 28, starting at 9:00 a.m. for tree maintenance. Detours will be in place guiding motorists around the work zone. This project is expected to take one day to complete, weather permitting and barring any unforeseen circumstances.

Saskatoon Transit may be affected by these detours. Transit service alerts and real-time bus information are available on third-party apps like Transit and Google Maps Transit on desktop.                              

For more information about current road restrictions and construction, visit saskatoon.ca/construction.

Direct service from the Special Events Stop (23rd Street and 2nd Avenue) to see Our Lady Peace/Collective Soul at SaskTel Centre on Thursday, February 27 at 7:00 p.m., is available at the following times:

• 5:45 p.m.
• 6:25 p.m.

Post-event drop-off is at the downtown terminal and regular fares apply ($3.00 per trip). Fare can be purchased on your mobile phone using either the TGo or transit app, transfers and passes are also accepted. Typically, buses arrive onsite 30 minutes prior to the end of the event.

Plan your trip to events at SaskTel Centre on Route 333 using the Transit app up to two weeks in advance. Check out the Transit+ feature to help make connections that combine Transit with OnDemand Transit, riide, and Uber. Download the Transit app from the Apple Store or Google Play.

Transit service times for special events at SaskTel Centre and other popular destinations can always be found at SaskatoonTransit.ca/plan-my-trip/popular-destinations. Experience the convenience of using Saskatoon Transit to attend all your favourite events.

On March 5, 2025, the City of Saskatoon will present the Preliminary Year-End Financial Results for the year ending December 31, 2024, to the Standing Policy Committee on Finance.

“I am pleased to report that the City’s preliminary 2024 year-end financial results indicate a surplus of $12.27 million, representing a 1.96% favourable variance from our approved civic budget,” says Clae Hack, Chief Financial Officer. “The City’s investment portfolio performed better than expected and contributed $9.14 million to this surplus, thanks to stronger interest rates and higher bond returns than originally planned in the budget.”

After accounting for the $9.14 million investment income surplus, the remaining civic operating budget realized a surplus of $3.13 million, equivalent to a 0.50% variance from the approved civic budget of $626.18 million. Some of the other key variances in 2024 that contributed to this surplus include: (Appendix 2 provides a detailed overview of all operating budget variances in 2024)

Transit Operations generated a $4.96 million surplus: 

• Transit revenues were $2.10 million higher than anticipated due to increased ridership and higher than expected UPass revenue.
• in addition, Transit had expenditure savings of $2.86 million primarily due to fuel and salary savings and vacant positions.

Administration engaged to find corporate-wide savings of $4.87 million:

• to help offset budgetary pressures, Administration gained favourable savings in staff training and travel, staff vacancies, materials, office supplies and other expenditures among the Civic Operating or Property Tax supported Business Lines.

Offset by a $6.48 million deficit in the Snow & Ice Management program: 

• activation of the Roadways Emergency Snow Response Plan (ERP) in March 2024 resulted in a $5.50 million deficit.
• 9 additional snow events in 2024 compared to the annual budgeted number of 5 to 6 snow events, caused an additional $980,000 overage.

“Administration recommends that the majority of the 2024 surplus be allocated to the City’s Fiscal Stabilization Reserve, which has been heavily relied upon in recent years,” Hack adds. “We recommend transferring funds to bring the Fiscal Stabilization Reserve to $17.04 million, leaving $6.90 million in the Snow and Ice Management Contingency Reserve. This allocation will help offset future operating budget deficits or other unforeseen challenges that may arise in the coming years.” 

Utilities 2024 Year-End Results: Details Appendix 3

The following City Utility surpluses or deficits were realized in 2024, resulting in an overall $10.73 million surplus or 2.46% positive variance from the approved budget:

• Water Utility reported a year-end surplus of $5.80 million.
• Wastewater Utility reported a year-end surplus of $4.10 million.
• Waste Services Utility reported a year-end surplus of $757,018.
• Storm Water Management Utility reported a year-end surplus of $220,129.
• Saskatoon Light & Power (SL&P) reported a deficit of $145,820.

The recommendations on the allocation of the surplus funds in 2024 are subject to the confirmation of the City’s year-end financial status as conducted by the annual external accountant’s audit process. The City’s 2024 Annual Report will be next released this summer.

The City of Saskatoon is committed to ongoing financial transparency, accountability and sound financial management. This is evidenced in its historically stable budgetary performance; the City has retained the ‘AAA’/Stable credit rating for twenty-three years, since S&P first began affirming the City’s credit rating in 2002.

For more information visit saskatoon.ca/budget

*This report includes road restrictions on Priority 1 (high traffic, high speed) streets only.

NEW

CIRCLE DR W NB CURB LANE CLOSED AT CLANCY DR
(Utility locates and road inspections)
Start: February 27, 10:00 a.m. End: February 27, 2:00 p.m.

ONGOING

LORNE AVE ROAD CLOSED FROM 8TH ST E TO 7TH ST E
(Connection replacement)
Start: February 26, 8:30 a.m. End: February 27, 5:00 p.m.

BRIGHTON BLVD ROAD CLOSED FROM TASKAMANWA ST TO 8TH ST E
(Construction)
Use McOrmond Dr
Start: November 20, 7:00 a.m. End: September 26, 2025, 5:00 p.m.

All restrictions will be lifted as indicated, weather permitting and barring any unforeseen circumstances.

For more information about current road restrictions and construction, visit saskatoon.ca/construction.