The amount of outstanding property taxes in the second quarter declined by nearly $500,000 compared to the same period in 2021, although fewer residents are repaying through a scheduled plan.
City administration presented the second-quarter financial report during the Sept. 12 city council meeting. Data about tax arrears and outstanding debt were contained within the document.
As of June 30, residents owed $2,080,157 in tax arrears. These comprised $1,205,881 in property tax liens and $874,276 in arrears payment plans. The tax liens represented about 72 per cent of total arrears.
In comparison, by June 30, 2021, total arrears were $2,564,950, including $915,748 in liens and $1,649,2020 in payment plans. The tax liens represented about 45 per cent of total arrears.
Therefore, the total amount of outstanding tax arrears declined by $484,793 from 2021 to 2022.
Meanwhile, by June 30, 2020, total arrears were $2,225,883, including $1,324,178 in liens and $901,705 in repayment plans. The tax liens represented about 68 per cent of total arrears.
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 amount of receivable property taxes outstanding as of June 30, 2022, was $16,534,844. This included $14,454,687 in current taxes and $2,080,157 in arrears.
In comparison, total property taxes receivable that were outstanding in 2021 were $30,172,095, followed by $27,432,046 in 2020, $15,597,758 in 2019, $13,714,702 in 2018 and $13,302,301 in 2017.
During the meeting, finance director Brian Acker explained that property tax receivables were “significantly higher” last year compared to this year because city hall pushed out the due date for taxes to July 31.
Borrowing
As of June 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 included:
- Multiplex/Events Centre long-term loan: $12,507,000
- Sanitary sewer long-term loan: $1,391,000
- Waterworks capital long-term loan: $24,081,000
- High service pumphouse: $7,892,000
- Buffalo Pound Water Corporation loan term loan: $10,265,320
- Buffalo Pound Water Corporation loan term loan: $15,315,865.76
- Moose Jaw Municipal Airport Guarantee: $1 million
These seven projects total $72,452,185.76 in outstanding debt; the debt limit is $95 million.
After the report was presented, council voted to receive and file the document.
The next regular council meeting is Monday, Sept. 26.
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