Questions Show Higher Financial Load On Nearly Stagnant Assessment Growth

By Robert Thomas

Moose Jaw’s nearly stagnant population and resultant low assessment or tax base growth coupled with growing financial demands from the City was highlighted in a couple of written responses to enquiries of Administration by Council.

In the area of revenues derived from property owners there was an increase of $32,500,659 in 2013 to $48,078,702 in 2018 or close to 50 percent when all utility fees are added to the increased amount derived from property taxes.

It needs to be noted two utility fees were until 2015 for recycling and 2017 for solid waste collection previously paid for out of general property tax revenues.

“The response shows in the year 2013 the total collected from the City was 32 and a half million dollars at the end of 2018 five years later 48 million and a little bit more an increase in five years of 50 percent off the property tax base which had relatively low assessment growth and population growth. An increase of 50 percent in five years or an average of 10 percent a year,” Councillor Brian Swanson said.

Source - City of Moose Jaw report to Council

In the area of assessment or tax base growth - where the City can assess property taxes or receive grants in lieu - the growth during the 2013 - 2018 period ranged from 1.31 per cent in 2013 to 2018 when the assessment growth fell for the first time over the period into negative numbers when the assessment growth shrank by 0.08 per cent.

Grants in Lieu or GIL are paid to the City by upper levels of government instead of property taxes as governments do not tax each other.

Additionally as part of the agreement with SaskPower the proposed $700 million natural gas fired generating station will not be paying property taxes or a GIL as it is standard for all SaskPower generating stations.

According to Statistics Canada the Census showed Moose Jaw’s population in 2011 at 32,546 and in 2016 at 32,724. The number of private dwellings increased from 15370 in 2011 to 15,476 in 2016 an increase of 106 new dwellings or just over half of a percent (.5) between the two censuses.

It should be noted during the previous Council, when Deb Higgins was mayor, the rate of assessment growth percentage-wise was higher than in the present Council’s term and that the Province instituted an austerity budget program in 2017 in response to the drop in commodity prices and the weakening of Saskatchewan’s economy.