The residents of Saskatoon are bracing for a significant financial burden as city officials project property tax increases that could reach double digits by 2026. According to a troubling multi-year financial forecast presented to city council on Monday, homeowners may face a staggering 10 percent property tax hike in the next budget cycle—a figure that has sent shockwaves through the community and raised serious questions about municipal fiscal management.
The preliminary forecast, which provides a sobering glimpse into Saskatoon’s financial future, indicates property taxes could increase by approximately 7 percent in 2025, followed by the even steeper 10 percent jump in 2026. These projections come as the city grapples with inflation, infrastructure demands, and growing operational costs that have created a perfect storm for municipal budgeting challenges.
“These projections represent a stark reality check for our fiscal planning,” said Kerry Tarasoff, the city’s Chief Financial Officer. “While these numbers are preliminary and subject to adjustment, they clearly signal the significant financial pressures facing our municipality in the coming years.”
The primary drivers behind these projected increases include inflation-related cost escalations, which continue to affect everything from municipal contracts to construction materials. Additionally, the city faces substantial infrastructure maintenance requirements that can no longer be deferred without risking critical service disruptions.
The 2025-2026 multi-year budget will be officially tabled in November, with council deliberations scheduled for December. This timeline gives city officials several months to refine projections and potentially identify strategies to mitigate the tax burden on residents.
City administration emphasized that these forecasts represent a “status quo” scenario that maintains current service levels without additional programs or significant changes to service delivery. The projections have prompted immediate calls from some councillors for a comprehensive review of municipal spending priorities and operational efficiencies.
Councillor Cynthia Block expressed concern about the impact on residents: “Double-digit tax increases would place an unmanageable burden on many households still recovering from pandemic-related financial challenges and ongoing inflation. We must explore every possible avenue to bring these numbers down.”
The city’s financial outlook is further complicated by funding gaps for major capital projects, including the proposed downtown event center and rapid transit initiatives, which remain in planning stages but will eventually require significant financial commitments.
According to financial analysts, Saskatoon’s predicament reflects a broader challenge facing many Canadian municipalities that rely heavily on property taxes while having limited revenue-generating tools at their disposal. Unlike federal and provincial governments, cities cannot run deficits for operational expenses, creating additional pressure to address funding shortfalls through tax increases.
Public reaction to the forecast has been overwhelmingly negative, with community organizations and business groups already mobilizing to advocate for more moderate increases. The Saskatoon Chamber of Commerce has warned that substantial property tax hikes could hamper economic growth and discourage business investment at a crucial time for the city’s post-pandemic recovery.
As the budget development process continues, city officials have committed to exploring additional efficiencies, service level adjustments, and alternative revenue sources that might help mitigate the projected increases. However, they caution that meaningful reductions will require difficult decisions about municipal priorities and service delivery models.
The looming tax increases raise a fundamental question for Saskatoon residents and policymakers alike: How can municipalities balance the growing demand for services and infrastructure with the financial capacity of their residents, especially in an era of economic uncertainty and inflationary pressures?
