Revenues were down and expenses were up for the City of Moose Jaw during the first quarter of this year, according to a city council report.
City administration provided a report of the municipality’s expenses and revenues from Jan. 1 to March 31 during council’s May 11 regular meeting. With little discussion, council unanimously received and filed the report.
One item of interest, said finance director Brian Acker, is the municipality could see a surplus of about $184,000 from its 2019 actual budget results. On the other hand, the reason council has a budget statement for Mosaic Place for only January is because Spectra Venue Management Services is “having some challenges in terms of producing statements.”
Revenues
As of March 31, the municipality reported revenues of $2.6 million, which is slightly behind the 2019 budget figure of $3.3 million, the report said.
The municipality expects to receive $50.1 million in revenue this year; it received $48.5 million last year.
Recreation services had revenues of $732,450 during this year’s first quarter, which is a decrease of about $100,000 compared to the same time last year.
Revenue from interest and tax penalties was $70,571, compared to $161,975 during the same time last year. Revenues are down, the report explained, due to the reduction in interest rates and a reduction in funds in the general revenue fund bank account. The municipality had invested the latter money during the third quarter last year.
The municipality collected $128,772 in fines and penalties during Q1 of this year, compared to $446,578 in Q1 last year. This is due to the municipality not having received as much funding from the photo speed enforcement (PSE) cameras. Saskatchewan Government Insurance (SGI) deducted $305,000 in PSE-related costs from the revenues generated in the first quarter.
Other areas this past quarter that saw a decrease in revenue compared to the same period last year were:
- Municipal taxation: $30,520 / $139,533
- Other levies: $600,425 / $633/491
- Licences and permits: $401,043 / $428,252
- Rents and concessions: $393,771 / $492,985
Expenses
Expenses under the protection of persons category were $4.9 million during this year’s first quarter, compared to $4.5 million in Q1 2019. This increase, the report explained, is within budget and is mostly related to salary costs.
The parks and recreation department had expenses of $2.4 million, compared to $2.1 million during the same time last year. The report explained that these increases are within budget and relate to increased budget provisions for this year.
There was $4.1 million in expenses in the miscellaneous category since there was a transfer of tax funding to the capital and utility budgets, the report said. This transfer was completed earlier than in past years due to council passing the 2020 budget in December. In comparison, there was only $265,462 in expenses in Q1 2019.
Other expenses this past quarter compared to the same period last year were:
- General government: $1.7 million / $1.8 million
- Public works: $860,581 / $1.2 million
- Sanitation and waste removal: $40,404 / $14,278
- Social services: $76,988 / $119,492
Overall expenses in Q1 2020 were $14.2 million, compared to $10.2 million in Q1 2019.
Tax arrears
The amount of tax arrears that property owners owe continues to increase year over year. As of March 31, property owners owed $2.5 million in arrears, with $1.4 million of that in liens and $1.07 million already on payment plans.
In comparison, in the first quarter of past years, property owners owed $2.4 million in 2019 and $2.1 million two years ago; in 2015 it was $1.3 million.
Borrowing
As of March 31, the municipality still owed money on the following loans:
- Multiplex long-term: $14.2 million
- Multiplex interim financing: $204,807.16
- Sanitary sewer: $4.5 million
- Waterworks capital: $27.8 million
- Buffalo Pound Water Treatment Corp.: $11 million
Capital projects
Almost all capital projects during the first quarter were on track for completion, although city hall deemed the schedules of two projects to be in jeopardy, the report said.
The upgrading of storm sewers for $500,000 began last June, but only $31,730 had been spent as of the first quarter. The pandemic has delayed the project until the fall.
The replacement of the pumphouse at the High Street water reservoir is supposed to start in August for $16.4 million and finished by May 2022; the municipality has spent $634,632 so far. While city administration gave no official reason for its delay, it’s reasonable to presume the pandemic is the cause.
The next regular council meeting is Monday, May 25.
