Saskatoon mayor says Canadian cities need to move past property tax model

A week before Saskatoon city council debates a historically high proposed property tax increase, Mayor Cynthia Block told local business leaders that cities need a new funding model.

Speaking at a North Saskatoon Business Association luncheon event Tuesday, Block said funding cities through property taxes dates back to the “era of the horse and buggy” in Canada.

“We want a new deal,” Block told reporters following the formal question-and-answer format. “Cities right across the country know that’s necessary. And I think the only way we get there is if we lean in together.

“All the cities together, but imagine if we also had our business communities with us, if we had our provinces with us.”

Block fielded questions about the proposed property tax increase for next year, which stands at 8.23 per cent heading into next week’s budget talks.

Without any reductions, that would be the highest property tax in Saskatoon history. A potential increase of 5.95 per cent would follow in 2027.

Block hinted to the crowd that “perhaps” a rise in building permits could translate into more tax revenue.

But she also pointed out that nearly half of the proposed property tax increase comes from a hike in the police budget.

She questioned the rise of spending on police, which could now balloon to a quarter of all city spending, but later told reporters she plans to support the police budget because of people’s concerns about safety.

She also said she does not plan to back a dedicated fee to address homelessness, which nearly two-thirds of respondents to a recent city survey said they be willing to pay.

Block acknowledged this year’s homeless count could be higher than last year, when it skyrocketed to 1,499 people identified in a point-in-time survey. That’s nearly three times higher than the number from two years earlier.

“I’m worried about it because of what we’re seeing and it appears, at least, that those numbers are going to go higher,” Block told reporters. But she said a possible homeless levy would require more consideration.

Among the measures not included in the preliminary budget is an affordable housing plan that is expected to cost $8.6 million and translate into a 1.3 per cent property tax increase both years.

Block also said she would be reluctant to vote to reduce the hours at city recreation centres to save money.