MOOSE JAW — Taxpayers owed nearly $4 million in total tax arrears by the end of the first quarter, which was almost 30-per-cent more than Q1 2023, although more people have joined a repayment plan.
City administration presented the first-quarter financial report during the May 13 regular city council meeting, which included data about tax arrears, outstanding debt and — a new feature — how much each property class owed.
Council voted unanimously to receive and file the report.
Property tax arrears
As of March 31, taxpayers owed $3,821,445 in total arrears, which included $1,802,607 in property tax liens and $2,018,837 in payment plans, the report said.
Conversely, by March 31, 2023, those numbers were $2,998,855, $1,838,213 and $1,160,642, respectively.
Therefore, the total outstanding amount of tax arrears increased by $822,590 — or 27.5 per cent — from Q1 2023 to Q1 2024. This comprised a year-over-year decrease in liens of $35,606 and a year-over-year increase in payment plans of $858,195.
Meanwhile, by March 31, 2022, taxpayers owed $2,859,803 in total arrears, which included $1,564,639 in tax liens and $1,295,164 in payment plans.
“Our arrears are up year over year. That seems to be a trend we’ve had for the last couple of years, where arrears have been trending upward,” said finance director Brian Acker.
Coun. Kim Robinson pointed out that there is nearly $1 million more in total arrears this year than in 2022. He wondered how city hall planned to correct that.
The city does have a plan, which includes actively pursuing the tax enforcement process against property owners, said Acker. However, the reality is that many residents are facing economic hardships and can’t pay what they owe, so there is only so much city hall can do to force them, although people can join monthly payment plans.
“We try to be as flexible as possible. … we can take properties, but we do that as an absolute last resort,” he added.
Property taxes receivable
Property taxes 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 by March 31, 2024, was $3,821,445, which was all arrears and did not include current taxes since Q1 was the start of the near year.
In comparison, total property taxes receivable that were outstanding by the end of Q1 in 2023 was $2,998,855, followed by $2,859,803 in 2022, $3,788,665 in 2021 and $2,526,855 in 2020.
Therefore, the year-over-year increase was 27.5 per cent.
Arrears by property classes
At the end of 2023, the seven property classes that city hall taxes owed $2,084,419.97 in outstanding arrears, while that number was $1,737,024.63 at the end of 2022. This means that those classes have owed $3,821,444.60 during the last two years.
The arrears that the seven classes owed in 2023 and 2022 and the totals were:
- Other agricultural: $788.92 / $838.37 / $1,627.29
- Commercial and industrial: $668,110.88 / $410,061.52 / $1,078,172.40
- Grain elevators: $0 / $0 / $0
- Multi-unit residential: $205,228.08 / $118,047.01 / $323,275.09
- Non-arable (range): $430.52 / $0 / $430.52
- Residential: $1,209,861.57 / $1,737,024.63 / $3,821,444.60
Compared to residential, commercial/industrial comprised 45 per cent of all outstanding arrears by property class.
Borrowing/debt
As of March 31, city hall was still repaying on five projects after borrowing to finance them.
The principal outstanding amount on each project was:
- Multiplex/Events Centre long-term loan: $11,031,000
- Waterworks capital long-term loan: $20,971,000
- High-service pumphouse: $7,113,000
- Buffalo Pound Water Treatment Corporation loan term loan (Bank of Montreal): $9,644,440
- Buffalo Pound Water Treatment Corporation loan term loan (TD Bank): $14,286,149.54
These projects totalled $63,045,589.54, a decrease from $64,075,118.36 at the end of Q4; the debt limit is $95 million.
The next regular council meeting is Monday, May 27.
