Translation:I meet Saskia every morning in the city.
In England I have regularly heard people say the will meet in town (when they are referring to their nearest town). In fact if you said "the town" you might wonder which town the are talking about (becaisd of the use of the word "the". From memmory when my dutch family have used the phrase "in de stad" it is used in the equivalent situation as "in town". I understand the literal translation is "in the town" but is "in town" closer to what is actually used?
Een stad is originally something with walls around it. These old medieval town could house a few hunderd people. The smallest town in Friesland probably is Sloten with around 700 inhabitants. For details about stad check https://nl.wikipedia.org/wiki/Stad and voor sloten check https://nl.wikipedia.org/wiki/Sloten_(Friesland)