A discussion about the City of Moose Jaw’s first quarter financial report turned into a spat between Mayor Fraser Tolmie and Coun. Brian Swanson, with the mayor accusing Swanson of not supporting economic development in the community.
Swanson’s initial comments during the May 13 regular meeting focused on property tax arrears and property tax receivables. He pointed out that while much can change by the end of the year, the report’s graphs worried him.
As of March 31, the municipality faced property tax arrears — composed to tax liens and arrears payment plans — of $2,447,633. In comparison, that figure was $2,195,054 during the first quarter of last year and $1,765,651 two years ago.
Swanson pointed out there was a significant reduction in payment plans for tax arrears in this year’s first quarter compared to last year — to $1,084,406 from $1,395,050. He also pointed out there was an increase of 70 per cent in property tax liens during that same time — to $1,363,227 from $800,004.
What happens with payment plans is they come to fruition, so property owners get caught up on paying their tax arrears, explained finance director Brian Acker. City hall then has to establish new payment plans with customers in arrears, which is why there is such a shift from one year to the next.
“In terms of drop-off in actual payment plans … we had plans with significant dollars paid off,” Acker added.
Swanson was also worried about property tax receivables. The first-quarter graphs have shown increases since 2014, with that year seeing just over $1 million. Five years later, that had increased to $2,447,633.
“What’s even more worrisome to me is lack of effect that has on what we’re doing as elected officials,” he said.
There is rarely a shortage of politicians who will tell voters how great everything is, but Swanson thought it was “pretty thin gruel” when one looks at the “statistical reality” of the numbers that could overwhelm them.
“But I think we have to realize the property tax burden on this community is not being met,” he continued. “There will be a day of reckoning on that.”
The mayor took issue with Swanson’s comments, saying Swanson could either continue to perpetuate those statistics, or he could instead help approve the largest land deal in Moose Jaw history. This would create jobs and spread the tax base between businesses and residents. However, Tolmie noted Swanson has never put forward a plan to deal with that tax gap.
“I think, personally, you want to keep the people of Moose Jaw oppressed,” Tolmie said, “because you don’t vote in favour of an opportunity that’s right before you.”
Tolmie wondered what Swanson’s plan was to change that. The mayor noted council’s plan is to create economic growth for the community.
“I guess Mayor Tolmie thinks it’s within his fiefdom to chastise me,” Swanson said.
Swanson noted he did produce several ideas during budget discussions to deal with this issue. What he is doing is pointing out the statistical reality that council is ignoring. These numbers will create serious implications for the municipality.
“It takes courage to change the path” that council is on, said Tolmie. Swanson’s recommendations had nothing to do with the economic effects “that could be a catalyst for the community. Nothing.”
Swanson never supported the Downtown Facility and Field House (DFFH), which is supposed to be an economic driver for the community, the mayor continued.
“You don’t have a business plan. This council has one,” thundered Tolmie, before deputy mayor, Coun. Chris Warren, interjected on a point of order.
Since no other councillors spoke, council then unanimously approved the first quarter financial report.
