Using one-time funding from landfill revenues and potentially creating a revenue-generating storm sewer-based drainage utility are two solutions that city council believes could address next year’s capital budget deficit.
During its 2024 budget meeting on Dec. 13, council approved eight motions worth $9,063,738 to address the $8,959,764 shortfall in the general capital reserve budget, leaving a surplus of $103,974.
Solid waste utility
Council voted unanimously to have city administration make a one-time contribution of $2.5 million from the solid waste utility to the general capital reserve for next year.
This is possible because of the extra revenues the city received this year from Buffalo Pound Water Treatment Plant’s disposal of pond sludge in the landfill.
“I know it’s only one time, but we definitely need the money this year. It’s a significant amount,” said Coun. Crystal Froese.
Coun. Heather Eby said she has concerns about using one-time funding to fill the shortfall because it offered a false sense of security. However, she thought it was appropriate to use it here.
She then asked city administration whether they could take $1 million of that and deposit it into the accumulated surplus to top up the depleted account.
Finance director Brian Acker acknowledged that that surplus is lower than where it should be, while administration plans to use that existing money to address an anticipated deficit this year.
He noted that there are other revenue sources administration can bring to council to refill the accumulated surplus, while he recommended that council use all the one-time money to address the capital budget shortfall.
Drainage utility
Council voted unanimously to have city administration review and research the possibility of creating a drainage utility for the City of Moose Jaw and bring back a report with recommendations that council could consider later next year.
“I’m really interested to see what the report will come back with. Establishing a utility needs to somehow reduce the taxation portion … ,” said Froese. “A utility needs to stand on its own two legs without increasing taxes every year.”
Administration said during a previous meeting that establishing a drainage utility for storm sewers would lead to city hall charging homeowners and businesses a monthly fee for the service, similar to garbage and recycling fees.
This could remove $7 million from the capital reserve budget over five years. Furthermore, this could eliminate operating budget costs and free up $344,321.
Administration also said that a new utility — should council want it — would likely come into effect in 2025 after directors conduct research first.
The Express will have a fourth story featuring the other two motions.
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