While most of the City of Moose Jaw’s revenue and expense areas were on budget last year, the municipality still finished 2020 with an operating deficit near $200,000.
The general revenue fund (GRF) is the city’s operating fund and is the source of financing for services such as public works, parks and recreation, general government, and police and fire.
According to a city council report, the municipality took in $48.3 million in operating revenues last year and had expenses of $48.4 million, leaving a deficit of $194,594.
This deficit will flow into the city’s operating accumulated surplus — or “rainy day fund” — and bring that account to $1.34 million. However, that account will decline to $845,000 by the end of December after covering commercial property appeal losses.
Based on its consolidated statement of operations, the City of Moose Jaw had total revenues of $95.5 million and $81.2 million in expenses, leaving a surplus of $14.3 million. This surplus will be added to this account’s accumulated surplus.
Finance director Brian Acker presented the 2020 audited financial statements during a recent city council meeting.
Operating fund highlights
Municipal taxation is the largest operating fund revenue source at $29.1 million or 60 per cent of all revenues. This area was $1.12 million higher than budgeted after the Saskatchewan Municipal Board provided it with money from the 2017, 2018 and 2019 property assessment appeal decisions.
“Those decisions have been in the city’s favour and result in a significant increase in funding for 2020. For future years, there will be some benefit as well, although this can be tempered by future assessment appeal decisions,” Acker said.
Revenue for licences and permits was $984,744 compared to expected budgeted amounts of $1.5 million. This reduction is because the city waived parking meter collections from March to September during the pandemic.
City hall saw revenue for fines and penalties of $813,032 compared to the expected budget of $1.1 million, partially because the provincial government changed how it allocates money from photo radar. The province now retains most revenues while Moose Jaw receives one-third of the money; $375,000 was received last year from photo radar tickets.
Meanwhile, since city hall did not enforce parking meter penalties from March to September because of the pandemic, $60,000 in revenue was lost.
Revenue for interest and tax penalties was $482,284 compared to budget of $628,526. This is because the city waived penalties and surcharges on taxes from April to October because of the pandemic.
Income for recreation services was down by roughly $740,000, but that’s “no surprise” considering all recreation venues were closed during the pandemic, said Acker. Revenues came in at $1.59 million compared to the budget of $2.3 million.
Other revenue items showing actual versus budgeted show:
- Other levies: $1.62 million / $1.65 million
- Rents and concessions: $1.1 million / $1.2 million
- Law enforcement: $1.34 million / $1.37 million
- Service charges: $74,545 / $138,253
- Recreation and community services: $1.5 million / $2.3 million
- Federal grants and subsidies: $48,876 / $97,715
- Provincial grants and subsidies: $10.4 million / $10.5 million
- Other contributions: $400,749 / $550,000
- Miscellaneous revenue: $184,729 / $251,307
Meanwhile, expenses for actual versus budgeted show:
- General government: $7.9 million / $8.6 million
- Protection to persons (police and fire): $19.9 million / $20.3 million
- Public works: $4.1 million / $4.7 million
- Sanitation and waste removal: $461,757 / $466,574
- Social services: $254,194 / $326,818
- Recreation and community: $10 million / $9.4 million; this is over budget because of the subsidy to Mosaic Place
- Debt charges: $16,529 / $32,350
- Provisions for reserves and allocations: $826,170 / $636,190
- Miscellaneous: $4.88 million / $4.85 million
The next regular council meeting is Monday, July 26.
