The City of Moose Jaw finished 2019 with a surplus of $184,755, although the finance department had to transfer funds from other areas to ensure the municipality finished in the black.
During the most recent city council meeting, city administration presented the 2019 audited financial statements, which provided a big-picture look at every area of finances.
Council voted 6-1 to receive and file the report. Coun. Brian Swanson was opposed.
2019 audited statements
The City of Moose Jaw saw total revenues of $95.2 million and expenses of $74.6 million last year, for an overall surplus of $20.6 million, based on its consolidated statement of operations and accumulated surplus.
However, finance director Brian Acker explained to the Moose Jaw Express that this additional money went to fund capital expenditures. Furthermore, this surplus must follow public sector accounting guidelines (PSAG), which means the $20 million must be capitalized and amortized; however, municipalities generally do not follow that type of accounting method.
Instead, the actual surplus upon which city hall focuses is the general revenue fund (GRF), which does not follow the PSAG guidelines. Last year this fund generated revenue of $48.9 million and had expenses of $51.9 million, for a deficit of $2.9 million. After accounting for net transfers, capitalized expenses and contribution of assets, that eventually left a surplus of $184,755.
By the numbers
By the end of 2019, Moose Jaw had a debt of $59 million, a decrease from $63 million the year before. Long-term debt includes water infrastructure financing, the multiplex, Buffalo Pound Water Treatment Corporation, wastewater treatment, and a multiplex interim financing loan.
The largest revenue item is municipal taxation, which generated $28.1 million, or 29.5 per cent of total revenues. This line item increased by $203,606 from the previous year.
The audited statement showed, based on a per capita basis, that Moose Jaw’s taxation level is $830.24, Acker said.
In response, Swanson pointed out this area creates a false impression that Moose Jaw’s taxes are low, when in reality, the municipality taxes based on property. One reason Moose Jaw has a lower per capita taxation compared to other cities is because this community has lower property values, especially in commercial.
“I do not want to leave anyone to think Moose Jaw is so low that we can raise it (tax levels). We have a punishing rate on the commercial sector and it is a small sector already under great pressure,” he added.
The second-largest revenue area was utilities at $25.5 million, comprising 26.8 per cent of the overall revenues, followed by contributions, grants and subsidies at $17.7 million, or 18.6 per cent of overall revenues, Acker continued.
With expenses, the largest item was utilities at $21 million, or 28.4 per cent of total expenses, followed by protection of persons and property (police and fire) at $20.5 million, or 27.5 per cent of total expenses, and recreation and community services at $15.3 million, representing 20.5 per cent.
GRF revenue and expense areas
Most revenues and expenses were close to budget, except for a few areas, such as:
- Licences and permits were $170,742 under budget due to lower parking meter receipts
- Building permits were $85,597 below expectations
- Law enforcement revenues were $218,776 above budget due to receipt of more policing services and provincial funding revenues
- Conversely, law enforcement expenses were $758,284 over budget due to salary costs
- Fines and penalties were $335,198 below budget due to automated speed enforcement revenues and parking meter penalties being lower than estimated
- Recreation and community services revenues were $857,472 higher than budgeted after the YaraCentre came under the department’s control
- Conversely, recreation expenses were $780,044 over budget due to YaraCentre becoming part of the city, with the building operating with a loss of $4,526
- Public works expenses were $789,051 under budget due to reduced expenses in the street and roads branch for snow operations
- Social service costs were $160,119 above budget due to increased paratransit subsidy costs
The next regular council meeting is Tuesday, Sept. 8.
