Total tax arrears owed during this year’s third quarter was nearly $137,000 less than the same period last year, although the number of people on repayment plans has also declined.
City administration presented the third-quarter financial report during the Nov. 28 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 Sept. 30, taxpayers owed $1,649,970 in tax arrears. These comprised $1,495,321 in property tax liens and $154,649 in payment plans. The tax liens represented around 90.6 per cent of total arrears.
In comparison, by Sept. 30, 2021, total arrears were $1,786,478, including $1,474,617 in liens and $311,861 in payment plans. The tax liens represented about 82.5 per cent of total arrears.
Therefore, the total amount of outstanding tax arrears declined by $136,508 from 2021 to 2022.
Meanwhile, by Sept. 30, 2020, total arrears were $1,815,840, including $1,119,924 in liens and $695,916 in payment plans. The tax liens represented about 65 per cent of the total arrears.
One reason tax arrears have declined compared to 2021 and 2020 is that city hall didn’t actively enforce arrears or their collection during the height of the pandemic, explained finance director Brian Acker. However, city hall has caught up and the report now reflects that.
“One of the benefits of that is we’ve taken over a number of derelict properties over the last number of months as we go through that process,” he added. “But it’s a fairly long process. It usually takes a couple of years to get those properties, so you’re just seeing some of those now coming up … .”
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 Sept. 30 was $9,714,292. This included $8,064,322 in current taxes and $1,649,970 in arrears.
In comparison, total property taxes receivable that were outstanding by the end of Q3 2021 were $9,585,332, followed by $9,267,856 in 2020, $8,249,804 in 2019, $8,192,714 in 2018 and $7,671,786 in 2017.
Borrowing/debt
As of Sept. 30, 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: $12,302,000
- Sanitary sewer long-term loan: $1,017,000
- Waterworks capital long-term loan: $23,649,000
- High service pumphouse: $7,783,000
- Buffalo Pound Water Corporation loan term loan: $10,179,000
- Buffalo Pound Water Corporation loan term loan: $15,172,146.34
- Moose Jaw Municipal Airport Guarantee: $1 million
These seven projects total $71,102,145.34 in debt; the debt limit is $95 million.
The next regular council meeting is Monday, Dec. 12.
