Saskatoon still proposing 2021 property tax hike of 3.87%, despite financial hit of COVID-19

The City of Saskatoon says a previously planned 2021 property tax increase of 3.87 per cent is still possible, even with the financial blow of COVID-19.

But city councillors will make the final call when they convene to settle thebudget next week.

On Wednesday, the city released an update confirming its operating budget faces a$21.8 million hole created by the pandemic. Revenues for areas likeSaskatoon Transit and leisure centres have been hard hit by COVID-19. The recent snowstorm also didn't help.

But by finding $2.7 million in unspecified "saving reductions,"the city says it was able to trim that shortfall to $19.1 million an amount itsays will be offset by money coming from a federal COVID-19 relief fund.

"We are very thankful to both the provincial and federal governments for financial assistance during this unprecedented pandemic, and without their help, the City as well as all other municipalities in Canada would be in dire financial situations," chief financial officer KerryTarasoffsaid in a news release.

• Snowstorm cleanup drives Saskatoon deficit up to $20.1M

Of course, nothing is final yet.

City council including new Ward 3 councillor David Kirton will meet next Wednesday and Thursday to finalize the budget and the2021 property tax hike, which was tentatively setlast year as part of the city's new two-year budgeting cycle.

For someone owning a home worth $371,000, a property tax increase of 3.87 per cent would mean paying $6.31 more per month than they do now.

Here's how Saskatoon's property tax hikes have shook out over the past decade:

• 2011: 4 per cent.

• 2012: 4 per cent.

• 2013: 5 per cent.

• 2014: 7.4 per cent.

• 2015: 5.3 per cent.

• 2016: 4 per cent.

• 2017: 4.8 per cent.

• 2018: 3.8 per cent.

• 2019: 4.4 per cent.

• 2020: 3.7 per cent.