City administration is blaming the pandemic for causing an increase in property tax arrears of 50 per cent, even though outstanding taxes have been increasing steadily for the past five years.
Total tax arrears during the first quarter of 2021 totalled $3,788,665, including $1,395,628 in tax liens and $2,393,037 on repayment plans with city hall, according to a finance report presented during the May 25 regular council meeting.
In comparison, tax arrears during the first quarter of last year totalled $2,526,855, including $1.3 million in liens and $1.1 million on repayment plans. This means outstanding taxes have increased by $1,261,180 — or nearly 50 per cent — year over year.
Meanwhile, arrears during the first quarter in previous years were:
- 2019: $2,447,633
- 2018: $2,195,054
- 2017: $1,765,651
- 2016: $1,575,372
The increase in outstanding taxes caught the eye of Coun. Dawn Luhning, who raised the issue during the meeting.
“Tax arrears are really high for the first quarter of 2021, like quite a bit higher than last year. I just noticed that the green bar (on the graph) for this year has been higher this year than the last couple,” she said, before asking if city hall was concerned by this.
“It’s certainly a symptom of the pandemic. I don’t think we’re surprised,” said finance director Brian Acker. “Certainly, our residents and our businesses have challenges. You’ll notice that a majority of those are in arrears payment plans, so they have agreed to some type of payment plan.
“It’s simply a case of the economic times caused by the pandemic makes it difficult for some businesses and residents to stay current,” he added.
Outstanding borrowing fees
There are four major outstanding loans that the City of Moose Jaw is paying off, according to the finance report.
As of March 31, the city owed:
- $13.5 million in principal for the multiplex long-term loan
- $3,193,000 in principal for the sanitary sewer long-term loan
- $26,187,000 in principal for the waterworks capital long-term loan
- $10,686,520 in principal for the Buffalo Pound Water Corporation loan term-loan, at 26 per cent
- If only the principal amount is considered, then the City of Moose Jaw must pay off $53,566,520 in total on the four loans.
The next regular council meeting is Monday, June 14.
