Moose Jaw city council had to open up the books on Monday night to find ways to cover a shortfall in funding from the provincial revenue sharing grant. 

The city had budgeted for a 4.1 per cent decrease in 2022. However, the final result was a decrease of an additional 10.1 per cent, or $355,299. Overall, the city saw a decrease of $680,946 in revenue sharing. 

The revenue sharing grant is received per capita from the provincial government. It is based on the sharing of three-quarters of a percentage point of the Provincial Sales Tax collected in the fiscal year two years before this one. 

Because 2021 was a census year, the provincial government decided to use the new population figures for the per capita distribution of the grant. Moose Jaw saw a decrease in population, while other centres saw increases. 

“Most of the other cities would be in the exact same position as us. So, we look at the public accounts of the Province of Saskatchewan,” said Director of Financial Services Brian Acker.  

“We can see how much the PST either increased or decreased, so we all budget based on that. So, it was about a 4.7 per cent decrease in PST.” 

Acker was asked if people not filling out their census form would affect the decrease in funding. 

“I believe the census has some appeal process. Municipalities can actually appeal their number if they don't feel it's correct. But yeah, barring anything like that, yes, if someone isn't counted, you're seeing it right there. It's a per capita basis for this grant. It's also per capita for our gas tax funding as well. So yes, we do lose funding,” Acker said. 

To make up for the shortfall, city administration found savings in the city solicitor budget of $128,309. The budgeted salaries from that department were based on a full year. The saving came because sourcing staff has taken some time and there was a low amount, $20,000, of additional external legal costs incurred this year. 

The city is also increasing the bank interest revenues to $62,000. Moose Jaw’s interest revenue is directly related to the Bank of Canada’s prime rate. The prime rate was raised once already in 2022 and the city is expecting at least one more increase before the end of the year. 

Finally, council approved a one-time transfer of $164,990 from the solid waste utility franchise fee account to the city’s operating budget.  

Acker said the solid waste utility is in good financial condition. 

“The balance of that reserve is at $10.6 million. We're contributing about $1.865 million annually to that reserve,” he said. 

Acker added that the solid waste franchise fee account is sitting at about $758,000.