Total tax arrears owed during 2022’s fourth quarter was nearly $12,000 less than in 2021, while the number of people on repayment plans continued to decline.
City administration presented the fourth-quarter financial report during the Feb. 27 regular city council meeting. Data about tax arrears and outstanding debt were contained within the document.
Council voted unanimously to receive and file the report.
As of Dec. 31, 2022, taxpayers owed $1,341,842 in tax arrears. These comprised $1,211,371 in property tax liens and $130,471 in payment plans. The tax liens represented 90 per cent of total arrears.
In comparison, by Dec. 31, 2021, total tax arrears were $1,330,481, including $1,160,875 in liens and $169,606 in payment plans. The tax liens represented 87 per cent of total arrears.
Therefore, total outstanding tax arrears declined by $11,361 from 2021 to 2022.
Meanwhile, by Dec. 31, 2020, total arrears were $1,510,021, including $985,688 in liens and $524,333 in payment plans. The tax liens represented 65 per cent of total arrears.
Tax arrears were relatively stable from 2021 to 2022, said finance director Brian Acker. City administration expected this as the community exited the pandemic and arrears levelled out.
Property taxes receivable
Property tax receivable consists of tax arrears and taxes owing. Tax arrears are overdue taxes, while current taxes are due but have not fallen into arrears. Taxes fall into arrears in the next year following the levy of taxes.
The total outstanding receivable property taxes as of Dec. 31, 2022 was $3,654,411. This included $2,312,569 in current taxes and $1,341,842 in arrears.
In comparison, total property taxes receivable that were outstanding by the end of Q4 2021 were $3,445,147, followed by $4,769,061 in 2020, $2,993,362 in 2019 and $3,029,255 in 2018.
When asked why property taxes receivable were higher in 2020 than in the following years, Acker replied that the pandemic struck that year and council instructed city administration not to collect those outstanding amounts.
Borrowing/debt
As of Dec. 31, 2022, there were seven projects that the City of Moose Jaw was still repaying — or guaranteeing — after borrowing money to finance them.
The principal outstanding amount on each project is:
• Multiplex/Events Centre long-term loan: $12,095,000
• Sanitary sewer long-term loan: $639,000
• Waterworks capital long-term loan: $23,213,000
• High-service pumphouse: $7,673,000
• Buffalo Pound Water Treatment Corporation loan term loan (Bank of Montreal): $10,091,900
• Buffalo Pound Water Treatment Corporation loan term loan (TD Bank): $15,027,313.60
• Moose Jaw Municipal Airport Guarantee: $1 million
These seven projects total $69,649,213.60; the debt limit is $95 million.
Meanwhile, the City of Moose Jaw is committed to a Buffalo Pound Water Treatment Corporation loan term loan of $14,300,000 in 2024. That amount will appear on the books that year.
The next regular council meeting is Monday, March 13.
