After some optimism that the city might run a small surplus, the city’s financial department announced at city council last night that Moose Jaw will have a $194,594 deficit. 

About $28.8 million was generated in revenue through municipal taxation, which accounted for 60 per cent of all revenue for the city’s operation fund. The city saw a large increase of $1.1 million over budget because Saskatchewan Municipal Board assessment appeals come out in favour of the city. 

In total, the city brought in $48.3 million in revenue. 

Expenditures amounted to $48.5 million, with protective services accounting for 40 per cent of the expenditures at just under $20 million. 

License and permit revenue was down compared to the budget because the city waived parking meter collections from March to September due to the pandemic. 

Because of the parking meters not being collected, revenue from fines and penalties was also down. The city also attributed this being down to a reduction in fine revenue from photo radar. 

Recreation Services also took a hit during the pandemic, with revenues down $740,000 compared to the budget. 

The city found savings of about $720,000 in the general government category with reductions from the city clerks, human resources, sundry, planning and development, and employer-paid benefits. 

Public Works saved $590,000 less than budgeted with snow and sanding operations expenditures reduced by $538,000. 

Finally, recreation and community services expenditures were down compared to the budget, but that was offset by an increased subsidy for Mosaic Place. The facility needed a $1.3 million subsidy compared to the $526,347 budgeted. 

The City of Moose Jaw’s long-term debt was at $54.6 million at the end of 2020, which director of financial services Brian Acker said isn’t far off other municipalities. 

“We compare favourably when you look at Saskatoon's and Regina’s [long-term debt]. There are six to seven times our size and really are in the neighbourhood of six to seven times the debt. So overall our long-term debt is comparable to other municipalities in Saskatchewan,” Acker said. 

Because the city cannot operate on a deficit according to The Cities Act, the $194,594 shortfall will flow into the city’s accumulated surplus. 

The city’s practice has been to keep the accumulated surplus at five per cent of the operating budget, or $2.4 million. Currently, the surplus is $1.1 million short of that target and the city hasn’t hit the target since 2017. 

City council approved $500,000 in anticipation of 2021 commercial appeal losses, leaving the surplus account with $845,000. If there are shortfalls in the operating budget and not enough funds in the surplus, the amount would need to be made up through taxation or other reserve funds. 

Meanwhile, there was some good news within the city’s reserves. The general fund saw $9.872 million in returns in 2020, which Acker equated to a 33.45 per cent tax increase to replace those funds.  

Many of those funds came from the city’s investment portfolios which have return rates of 9.92 per cent for long-term and 6.46 per cent for moderate-term. 

“Hardly a month goes by that someone doesn't question me on the reserves of Moose Jaw. Why don't we just spend them, spend them, spend them? But here, this is just proof again that these are the workhorses of the City of Moose Jaw and they are providing us with income each and every year,” said Coun. Heather Eby. 

Overall, the city’s reserves sat at $115.5 million at the end of 2020, up $3 million from 2019.