The City of Moose Jaw’s accumulated surplus account — or its “rainy-day fund” — sat at $5.5 million in 2016, but four years later, had declined by more than 75 per cent.
Coun. Heather Eby inquired about the accumulated surplus account during the June 14 meeting and asked what its status was from 2010 to 2020, including deposits and withdrawals and the reasons for the withdrawals.
A shrinking account
During the recent regular meeting, city administration provided a table with the data, along with a summary of the deposits and withdrawals for each year. The numbers showed:
- 2010: $2.4 million
- 2011: $2.1 million
- 2012: $2.8 million
- 2013: $2.0 million
- 2014: $2.7 million
- 2015: $4.4 million
- 2016: $5.5 million
- 2017: $3.2 million
- 2018: $1.6 million
- 2019: $1.8 million
- 2020: $1.3 million
From 2016 to 2020, the account declined by $4.1 million or roughly 75.6 per cent.
“I don’t like how far it’s been drawn down, but to see where it’s gone and how we’ve utilized it (including laying gravel and snow removal) gave me a better peace of mind,” said Eby. “I hope going forward we can start putting more in and not take so much out.”
Given the pandemic and everything the city has been through — council had to spend money to support the community — the report makes more sense when read in context, she added.
While the accumulated surplus account finished last year at $1.3 million, it will shrink even further by the end of this year. During the May 25 executive committee, council approved a recommendation to spend $500,000 from that account to cover property assessment appeal losses from the commercial and industrial sectors. This means the account will likely be around $800,000 by Dec. 31.
Deposits and withdrawals
In 2010, city hall withdrew $619,410 from the account for snow removal reserve ($383,000), lane rehabilitation ($150,000) and Winter Games deficit ($93,056) and received $6,646 for a depreciation correction.
In 2011, the municipality removed $614,566 for snow removal reserve ($387,000) and contribution to roadways ($331,000) and received $103,434 due to the return of an unexpended accumulated surplus (city).
In 2012, the city withdrew $273,235 as a contribution to the operating budget and received $287,300 from a surplus from the Downtown Facility and Field House, leaving a surplus of $14,065.
In 2013, city hall took out $969,605 for capital budget roadways ($393,000), snow removal reserve ($300,000) and a payout to the city manager ($276,605).
In 2014, the municipality removed $115,518 for the reinstatement of housing reserve funding ($47,489) and to reinstate out of scope (OOS) and scheduled days off (SDOs) carry forward ($112,290) while receiving $44,261 as a transfer from CEF.
There were no deposits or withdrawals for 2015 and 2016.
In 2017, the city withdrew $2,404,735 for a fund term solicitor ($119,000), as a transfer to capital for roadway funding ($600,000) and $1,685,735 as a transfer to capital.
In 2018, city hall took out $1,613,791 as a transfer to the capital fund to cover a provincial shortfall.
In 2019, the municipality spent $25,000 to support the Moose Jaw and District Seniors Association and received $79,925 as an equity from Mosaic Place, leaving a surplus of $54,925.
In 2020, the city withdrew $353,000 for the pandemic-related business assistance program ($15,500) and the 2020 property appeals allowance ($337,500).
The next regular council meeting is Monday, July 12.
