DUNMORE
Cypress County is considering moving up its property tax deadline to avoid being caught in a lurch if energy companies go into default or request extensions to pay off sizable tax bills.
During Tuesday’s meeting in Dunmore, county councillors passed first reading of a bylaw that would change the due date from mid-November to the end of June.
Administrators say it would help them better manage cash flow and help them react in cases of substantial non-payments.
“We’re done most of our spending by the time we start collecting taxes,” said chief administrative officer Tarolyn Aaserud, whose office is now seeking input from ratepayers before the bylaw is brought up again next month.
Administrators say the new proposed date, June 30, is more generally accepted as a tax deadline across Alberta, compared to the county’s current deadline of Nov. 15.
Aaserud said it would also allow administrators more time to amend budgets and cut spending or projects if default figures rise.
The original reason for the late autumn date was to help cattle producers schedule payments after calf sales.
However, farm accounts only comprise three per cent of the county’s total tax revenue, about $600,000.
The assessment base in the county of 7,600 residents is heavily weighted toward linear assessment on industrial property, such as gas wells, pipelines and rail lines. That class makes up 54 per cent of the county’s tax income. Linear and non-residential accounts plus a machinery and equipment levy, comprise 80 per cent of the annual tax revenue.
That is currently collected with six weeks left in the financial year, though spending is required throughout and remittance of the education taxes to the province occurs quarterly.
In general, say administrators in a note, the current date “could potentially open Cypress County up to significant risk” if higher than normal number of accounts are deemed uncollectible.
Earlier this fall two petroleum producers made special application to council to pay bills on no penalty payment plans in order to better manage their own cash.
Council granted each four months to make four equal payments to settle the account by the end of the first quarter of 2020.
Those two companies, Pinecliff Energy and Canlin Energy, combined tax owing represents 13 per cent of the county’s entire annual tax revenue of about $22.4 million.
Cypress County councillors have cancelled their regular meeting in late January in light of the province-wide Ag Services Board meetings.
The Feb. 4 council meeting in Dunmore will also include revisiting of the county’s master rates schedule for 2020.
