The City of Moose Jaw’s financial health remains stable halfway through 2025, with a strong revenue stream and expenditures largely on track, according to the second quarter financial report presented to City Council on Monday, August 25.
Early grant payments have bolstered the city’s income, but a notable drop in revenue from fines and penalties — attributed directly to reduced speed enforcement during the Main Street bridge construction — highlights how major infrastructure projects can have unexpected financial ripple effects.
The comprehensive report, which covers the period ending June 30, 2025, shows total revenues reached $56.5 million, representing a healthy 84% of the annual budget. On the other side of the ledger, total expenditures were $38.7 million, or 58% of the yearly budget, a figure generally aligned with mid-year expectations.
During the presentation to council, City Manager Maryse Carmichael emphasized that administration is taking a proactive approach to fiscal oversight, with much more closely scheduled meetings than has previously been the case.
"One thing that we have put in place this year is monthly reviews with all directors on both the revenues and expenses," Carmichael stated. She noted that an in-depth review of the first half of the year was recently completed, giving administration a "really good indication of where we are, financial health-wise, for the city".
Jaime Ansell, the city’s new Director of Financial Services, assured council that the overall picture is positive.
"The city's financial position is stable. Most variances are due to those timing and seasonal factors," she explained, adding that staff will continue to monitor the budget closely to ensure alignment with year-end targets.
Revenues bolstered by early grants
A significant factor in the strong revenue figures is the timing of provincial and federal funding. The 'Contributions, Grants and Subsidies' category is currently $4.87 million, or 105%, above its year-to-date budget. Ansell clarified that this isn't unexpected new money, but rather "the early receipt of full-year grant allocations" that were budgeted to be spread throughout the year. This has provided a temporary boost to the city’s cash-flow and reported income for the second quarter.
Similarly, revenue from 'Licenses and Permits' is $231,275 above its mid-year budget, a variance attributed to full-year business license fees being recorded in the first quarter.
However, not all revenue streams are overperforming. Revenue from 'Fines and Penalties' is lagging significantly, sitting $421,955, or 53%, below its year-to-date target.
Administration pinpointed the cause directly as "a reduction in automated speed enforcement activity".
Ansell’s presentation confirmed during her presentation that the decrease can be "attributed to the Main Street bridge construction, which has temporarily limited camera deployment".
Expenditures have been influenced by winter weather timing
On the spending side, most departments are operating within their expected budgets for the first half of the year. The report highlighted two areas with variances exceeding $100,000 for further explanation.
Public Works expenditures are currently 8%, or $259,047, over the year-to-date budget. This overage is primarily driven by the costs of a challenging winter, with 'Snow Operations' running $309,398 over budget. Additional pressures came from fleet maintenance and roadway repairs, which were offset by savings in administration within the department.
The 'Parks, Recreation and Community' portfolio is also showing a temporary overage of 9.5%, or $697,917. Ansell explained this is largely a timing issue related to third-party programming contributions and is expected to level off by the end of the year as funding and expenses align.
Stronger-than-expected performance at Temple Gardens Centre
A bright spot in the quarterly report was the financial performance of the Temple Gardens Centre. The facility posted a year-to-date operating loss of $215,439, which is a significant improvement over the budgeted loss of $458,636 for the same period.
The venue has been bustling with activity, hosting 115 events with a total attendance of 131,947 people in the first half of the year.
Food and beverage operations have been particularly successful. Year-to-date sales have reached $1,260,360, generating a net profit of $542,899.
Council questions and broader economic context
Council members engaged with the report, seeking clarity on specific items and broader economic pressures. Councillor Patrick Boyle inquired about the impact of tariffs and cost increases on city procurement.
Bevan Harlton, Director of Operations, responded that while the supply side for materials has been manageable, equipment and vehicle purchases have been more challenging.
"We've had some that have gotten towards the risk side," Harlton said, but he noted that the city's procurement policies have so far provided protection.
Ansell added that the city's procurement specialist works closely with vendors to navigate tariff restrictions and seek cost reductions where possible.
Councillor Chris Warren also queried the investment earnings, which at $101,882 year-to-date, represent 22% of the total annual budget of $467,700. Ansell acknowledged the figure and suggested it could be a timing delay in how earnings were budgeted, promising to follow up with a more detailed explanation.