Budget Deliberations: Halfway Through, With More to Come
November 26, 2025
Saskatoon Chamber Business Snapshot Q4 2025
December 17, 2025
City Council has approved the 2026/27 civic budget after a smoother and more disciplined process, but it ultimately continues Saskatoon’s long-standing trend of above-average tax and utility rate increases. The Chamber remains concerned that significant annual tax and utility rate hikes have become “normal” in Saskatoon and that the trajectory is unsustainable. Without a change in approach and commitment, the city could become less and less affordable for employers who ultimately create jobs, drive our economy, and expand our tax base.
Takeaways
• A smoother, more thoughtful deliberation process, but ultimately the same financial outcome as previous years.
• 2026 includes the second-highest property tax increase in nearly 40 years (6.7%), followed by another major hike in 2027 (5.8%).
• With added utility and user-fee increases, residents will pay hundreds more annually, and businesses will face costs in the thousands.
• Council prioritized core services like police, fire, and snow removal.
• There were no substantial program reductions or service adjustments to offset the substantial increase to property taxes and utilities.
Positive Steps
• Targeted investments that directly support economic activity.
• Constructive discussions on refocusing municipal operations around core responsibilities.
• Predictable, inflationary increases for Discover Saskatoon and SREDA to sustain tourism, business attraction, and economic development.
Ongoing Concerns
• Ongoing net growth in City staffing levels.
• No reductions or consolidation of non-core programs or services.
• No expansion of the City Auditor function tasked with improving cost-effectiveness.
• Minimal relief for employers facing cumulative cost pressures.
• The outcome does not reflect affordability as a priority.
Investments in Tourism & Economic Development
Discover Saskatoon
• Approved for a 3% increase in 2026 and 2027.
• A forthcoming report will explore possible amalgamation between Discover Saskatoon and the Saskatoon Region Economic Development Authority (SREDA).
SREDA
• 3% annual increases from 2026–2029.
• $800K one-time investment (over 4 years) to deliver a business concierge program for the City. Includes $100K in both 2026 and 2027 dedicated to investment attraction.
Even with these investments, Saskatoon continues to invest far less than comparable cities in functions that drive economic activity and expand the tax base.
Impact on Businesses
To illustrate how cumulative increases compound over time, the Chamber analyzed municipal taxes to see what Saskatoon's fiscal trajectory means in real terms. The Chamber looked at its own office building to see where municipal property taxes are headed.
Commercial Property Tax Projection
*Excludes reassessment, education taxes, library levies, and all non-municipal charges.
The compounding effect is clear: even moderate annual increases become substantial over time, raising the question of long-term sustainability for residents, employers, and Saskatoon’s competitiveness.