The City of Saskatoon has released its preliminary 2021 year-end financials which includes a $6.54-million deficit in the civic operating programs and a $12.25-million surplus in the utility programs. This is before year-end audit confirmation.
Director of Finance, Kari Smith, says the shortfall is largely due to the snow and ice removal costs from the November 2020 blizzard, higher than anticipated IT costs, and lower than budgeted operating revenues. However, under provincial law, municipalities aren’t allowed to operate with a deficit, so on April 12th, City Administration will present a strategy to the Finance Committee for offsetting the deficit. It includes moving $3.71-million from the Canada Community Building Funds which was originally put into contingency specifically for this purpose. Another $1.72-million would come through a one-time increase from the Water Utility Return on Investment and the final $1.11-million would be transferred from the Fiscal Stabilization Reserve.
Smith adds that while the City continues to face significant non-tax revenue challenges in user fees, and other forms of revenue have remained flat or decreased, several of the City’s businesses have achieved surpluses.
2021 Preliminary Year-end Yields Surplus Utility-Related Results:
• Saskatoon Light & Power (SL&P) reported a surplus of $4.49 million.
• Saskatoon Water reported a year-end surplus of $3.63 million.
• Wastewater Utility reported a year-end surplus of $2.74 million.
• Storm Water Management Utility reported a year-end surplus of $345,485.
• Waste Services Utility reported a year-end surplus of $1.04 million.
In addition to the utility posted surpluses:
• the Police Board was under budget by $860,000, this is included in the preliminary year-end deficit.
• SaskTel Centre and TCU Place posted preliminary deficits of $3.96 million and $3.37 million respectively, to be balanced through contributions from their facility and capital reserves.
• Remai Modern posted a preliminary surplus of $310,526.
The external audit of the 2021 financial statements is expected to be completed in June, then following that, the audited financial statements will be presented to Council for approval.
