Enquiry asked about accumulated surplus

It is a reserve account council has drawn from over the last four years to fund such things as lane enhancements, cast iron and most recently the cost of property tax appeals for commercial properties, and now a councillor is seeking more information about the accumulated surplus.

The accumulated surplus is an account where such things as unspent snow removal funds go. It is often seen as an emergency account where the city can go to if some unbudgeted emergency expense comes up.

The finance department recommends the accumulated surplus sit at five percent of property taxation to help financially mitigate any sudden and unseen catastrophes.

Over the last four years though it has been dipped into to finance items which were not always sudden emergencies.

The accumulated surplus had a balance of $5.5 million in 2016 when former Mayor Deb Higgins left office. 

Although additional funds have been added to it in the last four years, the accumulated surplus has been shrinking on an annual basis. 

Once a projected $500,000 is taken from it to cover commercial property tax appeals, the reserve is projected to have just over $800,000 in it.

The accumulated surplus has gone from a high of $5.5 million in 2016 to a projected $800,000 after a recently budgeted $500,000 to cover commercial property tax appeals losses. 

The accumulated surplus over the past 10 years . By Source: City of Moose Jaw

At Monday evening’s regular council meeting Councillor Heather Eby submitted a written enquiry looking into the accumulated surplus over the last ten (10) years.

“Can we get an accounting of deposits into and withdrawals out of the Accumulated Surplus from 2010 to 2020? And with the reasoning for the withdrawals included.”

At the recent vote to potentially use the accumulated surplus to fund commercial property tax assessments, Councillor Eby spoke against drawing down the account and was the lone voice to vote against the initiative.

There was no time estimate as to when an answer will be provided to council.
 
* https://www.mjindependent.com/home/2021/6/17/enquiry-asked-about-accumulated-surplus-jnsek