Property tax arrears owed in Moose Jaw in 2020 were nearly $500,000 more than in 2019.
As of Dec. 31, 2020, the amount of arrears that property owners owed the City of Moose Jaw was $1,510,021, including $985,688 in property tax liens and $524,333 in arrears that were part of a city hall repayment plan, according to a city council report.
As of Dec. 31, 2019, there were $1,050,698 in outstanding arrears, including $933,213 in property tax liens and $117,485 in arrears that were part of a repayment plan. This means arrears increased by $459,323 last year compared to two years ago.
As of Dec. 31, 2018, there were $934,059 in outstanding arrears, including $855,296 in property tax liens and $78,763 worth of arrears being repaid through a plan.
The amount of arrears owed decreased throughout 2020, based on previous quarterly reports. For example, in Q3 of last year, the arrears that property owners owed the City of Moose Jaw were $1,815,840, including $1.1 million in property tax liens and $695,916 that was part of a repayment plan.
City administration presented a report about the amount of outstanding property taxes during the Feb. 16 city council meeting. The information was part of an overall document that looked at fourth-quarter financial data for 2020.
Council voted unanimously to receive and file the Q4/full-year financial report.
Repayment plans help
Arrears were up more last year than in 2019, but the amount now being repaid through plans has also significantly increased after council made it easier for struggling taxpayers to join an instalment program, finance director Brian Acker said. This has benefited not only residents but also the municipality since city hall now knows that they are regularly scheduled to pay.
City hall collected 96 per cent of all taxes in 2019, while that number dropped to 94 per cent last year, which was expected due to the pandemic, he continued.
“But it isn’t to a point where we are overly concerned … ,” Acker added. “The ability to get people onto payment plans really helps to alleviate (those concerns) on our side and on theirs.”
Overall property taxes owed
The total amount of property taxes receivable that was outstanding at the end of 2020 was $4.77 million, including $3.26 million in current taxes and $1.51 million in arrears from past years.
Property taxes receivable is how much money is outstanding at the end of the year and has been billed out to taxpayers but not yet collected, city manager Jim Puffalt explained. Money that is current was billed out in the particular year, while arrears is money carried forward from previous years.
The amount of property taxes that city hall should have received in past years ending Dec. 31, including total, current, and arrears, was:
- 2019: $2.9 million / $1.9 million / $1.05 million
- 2018: 3.02 million / $2.09 million / $934,059
- 2017: $2.5 million / $1.9 million / $591,111
- 2016: $2.2 million / $1.7 million / $445,736
- 2015: $1.9 million / $1.5 million / $397,074
Borrowing
The fourth-quarter/full-year report also listed the amount of money that the City of Moose Jaw owes on the loans it borrowed to finance projects.
As of Dec. 31, the principal amount still left included:
- $13.69 million on the long-term multiplex loan
- $3.54 million on the sanitary sewer long-term loan
- $26.59 million on the waterworks capital long-term loan
- $10.76 million on the Buffalo Pound Water Treatment Corporation long-term loan at 26-per-cent interest
The next regular city council meeting is Monday, March 8.
