2024-2025 Budget Assessment and Reduction Strategies
This report outlines the budgetary forecast for 2024-2025, potential reduction targets, and recommended options to close the funding gap. It discusses the impacts of reducing purchasing power for various services and the implications of choosing Option #2. The methodology for revenue and expenditure allocation is also detailed.
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2024/2025 Budget Inflationary & Phase-in Decisions
2024 Budgetary Forecast SL&P ROI Inflationary Reduction Roadway Preservation Program Saskatoon Fire Apparatus Civic Building Comprehensive Maintenance Fuel Estimates Future Fire Station Phase-in Transit Service Future Service Phase-in East Leisure Centre Phase in Snow & Ice Emergency Response Phase-in Transit Bus Growth Negative Contingency Phase-Out TOTAL Amount (in millions) $3.3 $10.2 $0.8 $2.7 $1.2 $1.3 $0.2 $0.6 $1.6 $1.8 $3.9 $27.6
Options to Close the Funding Gap Option 1 Deferral and Planned Future Phase-in 50% reduction of significant inflationary pressures $0.10/L reduction in Fuel/Diesel Estimates Various Deferrals on Phase-ins Option 2 More Significant Deferral & Future Phase-in 75% reduction of significant inflationary pressures $0.15/L reduction in Fuel/Diesel Estimates Various Deferrals on Phase-ins Option 3 Combination
Recommended Option #2 Impacts Reduction of purchasing power for Roadways, SL&P, Facilities Maintenance and Fire Apparatus No base funding for future Emergency Snow & Ice Events Reduces but maintains some budgetary risk Risk/Negative Contingency/Targeted Savings remains in the Budget Reduction to Fuel/Diesel Estimates No base funding increase for Transit Bus Growth No Phase-in for future Fire Station, Transit or East Leisure Centre Operations More pressure in future years when services open
Potential Reduction Targets Property Tax Impact 9% 6% 4% 2024 Reduction Required $26.87 million $35.46 million $41.10 million 2025 Reduction Required N/A $5.30 million $11.48 million
Methodology #1 Revenue + Expenditures 2024 Reduction Allocations (Revenue + Expenditures Allocation Method) Business Line Arts, Culture and Events Venues Community Support Corporate Asset Management Corporate Governance and Finance Environmental Health Recreation and Culture Saskatoon Fire Saskatoon Police Service Transportation Urban Planning and Development Total 4% Property Tax 6% Property Tax 9% Property Tax 654,224 $ $ 1,645,093 $ 1,419,041 $ 1,118,234 $ $ 4,334,297 $ 3,738,722 $ 2,252,989 $ 1,943,406 $ 5,060,168 $ 4,364,851 $ 3,973,048 $ 3,427,112 $ 9,383,097 $ 8,093,767 $ 12,159,545 $ 10,488,703 $ 528,431 $ $ 41,109,125 $ 35,460,325 $ 564,327 429,482 1,079,963 734,093 2,845,359 1,479,032 3,321,875 2,608,208 6,159,771 7,982,441 346,902 26,987,125 $ $ $ $ $ $ $ $ $ $ $ 964,577 455,819
Methodology #2 Funding Gap Allocation 2024 Reduction Allocations (Funding Gap Allocation Method) Business Line Arts, Culture and Events Venues Community Support Corporate Asset Management Corporate Governance and Finance Environmental Health Recreation and Culture Saskatoon Fire Saskatoon Police Service Transportation Urban Planning and Development Total 4% Property Tax 6% Property Tax 9% Property Tax 143,085 $ $ 92,883 $ $ 5,230,084 $ 4,511,419 $ 3,062,438 $ 2,641,628 $ 1,643,085 $ 1,417,309 $ 2,862,485 $ 2,469,151 $ 3,647,761 $ 3,146,523 $ 6,348,890 $ 5,476,490 $ 17,910,212 $ 15,449,172 $ 168,203 $ $ 41,109,125 $ 35,460,325 $ 123,424 80,120 93,932 60,975 3,433,421 2,010,415 1,078,645 1,879,151 2,394,665 4,167,889 11,757,612 $ $ 26,987,125 $ $ $ $ $ $ $ $ $ 145,091 110,421
Next Steps The Preliminary Business Plan and Budget will be built based on direction provided up until the end of August Final Confirmation at Budget Deliberation of all changes Opportunity to adjust recommendations
Revenue Overview 2023 Op Rev (in millions) $0.82 $1.59 $0.39 $0.00 $2.80 % of Overall Op Rev. 29.29% 56.79% 13.92% 0.00% 100.00% Service Line Animal Services Cemeteries Community Development Community Investments & Support Community Support Business Line
Expenditure Overview Service Line 2023 Op. Exp. (in millions) $ 2.05 $ 1.62 $ 4.07 $13.85 $21.59 % of Overall Op. Exp. 9.50% 7.50% 18.85% 64.15% 100.00% Animal Services Cemeteries Community Development Community Investments & Support Community Support Business Line
2024/2025 Key Pressures Item Animal Services Contract Increases Abatements & Economic Incentives Youth Sport Subsidy Meewasin Valley Authority Grant 2024 Amount $271,000 ($366,800) 2025 Amount $42,300 ($363,000) $137,500 $36,900 $42,800
Options Option Description 1A Reduction Special Event Grant and/or Provision for Civic Services 1B Reduction to Youth Sport Subsidy 2 10% Pet License Increase 3 Additional 3% Cemetery Rate Increase 4 Decrease Transfer to Cemetery Development Fund 5 Reduce Service Level Cemetery Maintenance 6 Reduce Perpetual Care Fund Transfer Potential $0 to $431,000 $0 to $245,000 1% = $57,000 $80,000 $60,000 $62,400 $20,000 $0 to $77,300
Revenue Overview 2023 Op Rev (in millions) $1.20 $0.07 $1.27 % of Overall Op Rev. 94.49% 5.51% 100.00% Service Line Fire Services Emergency Management Saskatoon Fire Business Line
Expenditure Overview Service Line 2023 Op. Exp. (in millions) $1.57 $56.05 $57.62 % of Overall Op. Exp. 2.72% 97.28% 100.00% Emergency Management Fire Services Saskatoon Fire Business Line
2024/2025 Key Pressures Item Asset Manager Operations Dispatch Manager Communications Consultant Fire Station #3 & #5 Maintenance Fire Communications Centre Technology 2024 Amount $140,300 $140,300 $115,700 $249,300 $277,500 2025 Amount - - $187,500
Options Option Description 1A Defer Asset Manager Position 1B Defer Operations Dispatch Manager 1C Defer Communications Consultant Potential $140,300 $140,300 $115,700
Arts, Culture & Event Venues Business Line
Expenditure Overview Gross Expenses 2023 Op. Exp. (in millions) $7.3 Remai Modern Art Gallery $0.6 $1.8 $9.7 SaskTel Centre TCU Place Arts, Culture and Events Business Line
2024/2025 Key Pressures Item Remai Modern CBCM Increase Remai Subsidy Increase 2024 Amount $41,000 $134,000 2025 Amount - $115,000
Options Option Description 1 Defer Remai Modern CBCM Phase-in Potential $41,000
Taxation & General Revenue Business Line
Revenue Overview 2023 Op Rev (in millions) % of Overall Op Rev. Service Line $13.92 $83.62 $46.53 $54.67 $3.49 $292.00 2.82% 16.92% 9.41% 11.06% 0.71% 59.08% Fines and Penalties General Revenue Grants in Lieu of Taxes Municipal Revenue Sharing Grant Other Levies Property Levy Taxation and General Revenues Business Line $494.23 100.00%
Expenditure Overview Service Line 2023 Op. Exp. (in millions) $5.98 $(1.57) $ - $ - $0.77 $0.67 $5.85 Fines and Penalties General Revenue Grants in Lieu of Taxes Municipal Revenue Sharing Grant Other Levies Property Levy Taxation and General Revenues Business Line
2024/2025 Key Pressures Pressures Considered in Earlier Reports 2024 Amount SL&P ROI Phase-Out Item 2025 Amount - $3,300,000 Item Interest Stabilization Phase-Out Traffic Provincial City Violations 2024 Amount $100,000 $200,000 2025 Amount - ($50,000)
Options Option Description 1 Interest Stabilization Removal Phase-in 2 Tax Certificate/Search Fee Increase 3 Property Tax Penalty Increase 4 Parking Ticket Penalty Increases Potential $50,000 $282,000 $424,000 $560,000
