Reduced revenue and increased expenditures are presenting the City of Moose Jaw with a number of budget challenges as initial reports show a budget deficit of $2.2 million.
A fresh council, led by new mayor, Fraser Tolmie, will be reviewing a “worst case scenario” budget report that calls for increased taxes and utility rates in the city of just over 30,000.
The report shows revenue in Moose Jaw, Sask. is down 0.2 per cent from the 2016 budget at $44.2 million, while expenditures are up almost five per cent at $46.5 million.
City manager Matt Noble cited unavoidable costs like the replacement of Moose Jaw’s aging cast iron water mains and decreases to the city’s revenue sharing formula as contributors to financial woes.
READ MORE: City of Moose Jaw to pay for cast iron water mains after referendum sweep
One area that saw a considerable loss of revenue over the past three years was in commercial property assessment appeals. Since 2013, the city lost $863,000 in revenue, which was borne by the commercial sector.
“Those always impact communities. It’s inevitable… it’s not a perfect science,” Noble said.
“A number of our hearings didn’t get heard at the provincial level for a significant period of time, so we wound up with a sort of lump sum adjustment which is a bit abnormal.”
In order to tackle the financial woes, the budget estimates report encourages cost-saving measures in operational areas.
“When we sit down as a council we’ll be prioritizing and bringing what our thoughts are to the table,” Tolmie said.
Council will be meeting again for two full days in February to hammer out budget details.
VIEW BELOW: Moose Jaw city council was presented with “worst case scenario” budget estimates on Monday, Jan. 23.
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