The City of Moose Jaw is seeing a significant increase in property tax arrears, which is raising red flags for city administration.
There is a total of $3 million in arrears, compared to $2.1 million last year. This includes $2.97 million in property tax liens and $29,907 in payment plan arrears.
“We continue our tax collection efforts and working with people for payment plans and those sorts of things as we move through that process. The unfortunate reality is a lot of people are suffering financial hardships and we’re seeing it reflected in some of our taxpayers,” said Director of Financial Services Brian Acker.
Acker added that the city has a process for collecting taxes, including offering payment plans, even though the city struggled with that in 2024 as well. In extreme cases, the city can apply to take over ownership of the property and sell it to recover the lost income.
Coun. Patrick Boyle was one of a few councillors who voiced concerns about the amount of property tax in arrears. He added that it was a real eye-opener.
“Three million dollars and climbing by $800,000, almost $900,000, is a bit alarming,” Boyle said.
“I understand the hardships and things, but at the end of the day there is the other percentage of citizens that had to pay theirs and go through that process.”
The city has seen a steady increase in tax arrears as the total arrears in 2022 was $1.6 million.
Moose Jaw Events Centre
The Moose Jaw Events Centre continues to post better-than-expected finances as city council was presented with the city's third-quarter financial report.
The arena and conference centre's financial statements through September show that it is operating at an overall net loss of $594,259, compared to a budgeted loss of $1.02 million.
“Again, (it) has been a very positive year for the events centre. When we look at the overall bottom line right now, we have an overall net loss of $594,000 as compared to a budgeted loss of just over $1 million. So, it’s a great, great improvement in that area this year,” Acker said.
Included in the statements were the food and beverage sales, costs, and profits made. Sales, year-to-date, are $1.6 million with a net profit of $502,260.
City Revenue
The city's overall revenue sits at $59 million or 95 per cent of the budget, compared to $53 million last year.
This year's taxation revenues were added to this report and it is showing that the city is $460,000 ahead of budget.
“We are generating some additional tax dollars and that’s really been due to assessment growth. We’ve had some additional assessment growth, more than we had anticipated and it’s providing us with some additional revenue,” Acker said.
Licences and permits are behind last year's numbers as commercial building permits have been lower than expected so far in 2024.
Investment earnings continue to be down significantly due to the General Revenue Fund being overdrawn due to several years of operating deficits. The General Revenue Fund is back into a positive balance due to tax collections and it is estimated that revenues will be in the range of $100,000 to $200,000.
Waterworks revenues are 66 per cent of the budget at the end of the third quarter. This is due to audit requirements to recognize accruals for the utilities, which is about $1.6 million and is expected to be made up by the end of the year. It was also noted that water costs from Buffalo Pound Water Treatment Plant are up about $320,000, which is reflected in an increased cost of water. This increase was required to pay for the treatment plant's rehabilitation project. Wastewater is at 64 per cent because of the same revenue accrual at the end of the year.
The landfill revenues are down compared to 2023 at the end of the third quarter. However, expenditures are also down compared to last year.
City Expenditures
Total expenditures for the city remain on target with $47 million spent, or 76 per cent of the budget. This is down from 2023 when 80 per cent of the budget was spent.
“Overall, if we look at our revenues and expenditures, it looks like the city is very much on target for its budget for 2024,” Acker said.
“Having said that, there are still three months left in the year in terms of this reporting. So, there can be significant changes.”
General government expenditures are 71 per cent of the budget spent through 75 per cent of the year, raising no red flags for Acker.
Protective services, which include police, fire, and other services, are right on target at 75 per cent.
Sanitation and waste are sitting at 74 per cent of the budget, with Acker stating that they are on target to come in close to budget by year-end.
Public works has seen an improvement in expenditures in 2024. The workshop and fleet areas sit at $1.1 million as compared to $1.5 million at this time last year. Fleet services have about $233,000 in loss on equipment this year, compared to $718,000 in 2023. The city is expecting this area will come in over budget in 2025.
Another area of concern Acker pointed out was that roadway maintenance and repair is at 118 per cent of the budget. He also raised concerns about snow removal.
“As you’re aware, we do have a snow removal reserve. There’s about $618,000 in that reserve,” said Acker.
“So, we will certainly keep plowing and keep hauling snow right through to the end of the year. We do have reserves to cover that off. So, even though we’re sort of on budget at this point, we may very well exceed budget, but no concerns. We have reserves set aside for them.”
Sanitation and waste are expected to go over budget as street cleaning is sitting at 112 per cent of the budget spent.
Cemeteries are 90 per cent of the budget spent. However, much of what was expended was seasonal work and the fourth quarter is expecting a decrease in activity.
Parks administration is sitting at 85 per cent of its budget expended due to the reallocation of salary and benefits from other business units. Facilities administration is also over budget at 91 per cent for the same reason.
Third-party programming sits at 88 per cent of the budget spent. This area is still expected to come within budget and it is mainly due to the timing of a number of funding payments.
Transit continues to come at a high cost for the city. It is trending above budget with vehicle maintenance at 97 per cent and administration at 83 per cent due to increased maintenance costs and a number of annual entries for administration costs impacting the amount spent. Paratransit is seeing similar increases.
Recreation and community services is also sitting in a good place at 78 per cent of the budget spent.
Appropriations and subsidies are at 97 per cent of the budget. Acker said this is normal for this time of year as it relates to the appropriation of taxation to other funds and transit or paratransit subsidies. He added that, reviewing the transit and paratransit subsidies, they are expected to be over budget by about $200,000.