Total tax arrears owed during 2023’s first quarter was nearly $140,000 more than in 2022, while the number of people on repayment plans continued to decline.
City administration presented the first-quarter financial report during the May 23 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 March 31, taxpayers owed $2,998,855 in total arrears, which comprised $1,838,213 in property tax liens and $1,160,642 in payment plans, the report said. Tax liens represented 61 per cent of total arrears.
As of March 31, 2022, taxpayers owed $2,859,803 in total arrears, which comprised $1,564,639 in tax liens and $1,295,164 in payment plans. Tax liens represented 55 per cent of total arrears.
Therefore, the total outstanding tax arrears increased by $139,052 from 2022 to 2023.
Meanwhile, by March 31, 2021, taxpayers owed $3,788,665 in total arrears. This comprised $1,395,628 in tax liens and $2,393,037 in payment plans. Tax liens represented 37 per cent of total arrears.
During a post-meeting scrum, Mayor Clive Tolley said he believed his job was to help grow the city and make it a positive economic environment where people could acquire a living wage, afford a home, put their kids through school and pay the bills.
“Whenever there’s somebody struggling to meet those basic needs — their underemployed or unemployed — I’m always hoping that we can do better,” he said. “… in every city there’s going to be some people (who) are having a struggle paying their bills, and certainly the cost of groceries, gasoline, all the materials you need for a new house — everything’s just skyrocketed.”
During economic development week from May 15 to 19, the mayor visited the Brandt Industries trailer manufacturing plant and filmed a video about how people who work there earned a decent living wage. Tolley believed that was one way to promote the economy and the high-paying jobs here.
While some residents work multiple jobs and there are some homeless people here, Tolley pointed out it’s less expensive to live in Moose Jaw than in other Canadian cities and most people can make ends meet.
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 property taxes receivable as of March 31 — and those in arrears — was $2,998,855. No current taxes were outstanding since this was the first quarter.
In comparison, total property taxes receivable that were outstanding by the end of Q1 2022 were $2,859,803, followed by $3,788,665 in 2021, $2,526,855 in 2020 and $2,195,054 in 2018.
Borrowing/debt
As of March 31, 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 was:
- Multiplex/Events Centre long-term loan: $11,886,000
- Sanitary sewer long-term loan: $257,000
- Waterworks capital long-term loan: $22,772,000
- High-service pumphouse: $7,563,000
- Buffalo Pound Water Treatment Corporation loan term loan (Bank of Montreal): $10,004,020
- Buffalo Pound Water Treatment Corporation loan term loan (TD Bank): $14,881,359.22
- Moose Jaw Municipal Airport Guarantee: $1 million
These seven projects total $68,363,379.22; 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, June 12.
