Saskatoon property owners will pay about $15 less in property taxes than expected this year because of a renewed agreement between province and the city.

On average, taxpayers will still see a $66 hike this year, thanks to a new agreement that will see the SaskEnergy again pay grants instead of taxes on buildings in the city.

That is slightly less property tax than expected. Originally, the average homeowner was expected to pay an extra $81 a year.

The property tax for 2018 was lowered by 0.91 per cent to 3.79 per cent, the city announced on Thursday.

"This is most definitely a positive development," Kerry Tarasoff, the city's chief financial officer said in a news release. "Anytime we can ease the load on the property tax is most welcome."

The fact provincial buildings were not paying city taxes was a contentious issue during this year's city budget deliberation.

Much of 2018 hike was blamed on province

Mayor Charlie Clark blamed much of the 4.7 per cent hike in 2018 on the provincial cuts.

This new arrangement means only one of the province's Crown corporations in the city will pay the grants instead of taxes.

SaskEnergy will pay about $2.66 million in grants this year.

The city of Saskatoon is still out some money because the province cut the grants-in-lieu program during last year's provincial budget, which once saw flat rate paid to municipalities in lieu of property taxes.

SaskPower, the city says, is still not paying $2.3 million in grants.

In 2017, the city cut staffing costs, increased parking fines and deffered some snow removal to help make up the shortfall.