Debt Supported by Taxes
|Debt per Person (%)||314||463||387||635||727||652||767|
The measure represents each resident's average share of the City's long-term tax-supported debt. Debt per capita helps to communicate City's debt levels.
The supported debt per person = Actual Long-term Borrowing (including P3 financing)
Population of Saskatoon
The City's population is estimated as of December 31 for each year, by the City of Saskatoon Planning and Development Division.
Long-term tax-supported debt includes debt repaid by property taxes and federal gas taxes, but excludes utility debt. In the future, it also will include Public Private Partnership (P3) financing.
How are other cities doing?
Saskatoon's long-term debt is lower than debt in other major cities in Western Canada
Source: Total debt comes from various City's Annual Reports, as posted on their websites. Population data is from the 2011 Census by Statistics Canada. Long-term tax-supported debt per capita using more recent estimated populations would be lower.
What are the benefits of achieving the target?
- Long-term public infrastructure like bridges and roads is needed to support economic growth and quality of life for citizens
- Debt is an important part of any city’s funding strategy for long-term infrastructure
- The maximum debt per capita ensures debt levels are controlled based on the population
- Although not considered directly by credit rating agencies, the measure contributes to a strong credit rating which keeps interest rates lower
What are the risks?
- As the City grows, there is more need to expand infrastructure which will require more debt financing
- Increased debt and interest payments influence the tax rate