City loosens Community Warmth program; rebates for utility customers

By COLLIN GALLANT on August 19, 2021.

cgallant@medicinehatnews.com@CollinGallant

The city will loosen a utility relief program that typically allows only one-time help to clear up outstanding accounts, while a one-time credit is on the way for all local utility customers.

This summer council directed staff to come up with a plan to distribute $4.5 million as a second “COVID relief” program, and will be applied equally as a $136 credit on all utility bills in September.

This week, council also asked staff to expand parts of the “Community Warmth” program that helps clear up overdue utility bills on a one-time basis after applications for aid are vetted by the Salvation Army.

On Monday, Coun. Julie Friesen made the motion in council for the program to temporarily allow a second application for additional funds set aside in 2020 to help Hatters financially during the pandemic.

“It continues to have devastating effects on so many of our residents,” said Friesen. “(With) a very hot summer combined with the rates of electricity, the rates of payment may be overwhelming for folks.

“We haven’t released the second tranche (of 2020 funding), so we do have money available.”

Staff are now determining how to word the changes, deciding between a time period of either the current calendar year or the next 12 months. Final wording is expected at council’s next meeting.

Last May council earmarked $8 million in reserve funding to bring in a tax freeze, create business grants and also provide about $1 million for charitable endeavours, with a large portion going toward “Community Warmth.”

In July, city administrators told the News that about $550,000 of the funds had been allotted to accounts, and they expected the total to reach about $750,000.

A typical year sees about $20,000 paid out of the program funded by ongoing voluntary donations attached to utility bills.

At July 2020, the city was carrying $2.7 million on bills related to a utility deferral program, but one year later, the figure is now about $1.5 million owed by about 12 per cent of the customer base.

Utility credit

Hatters also heard this week that a plan announced earlier this summer to disperse $4.5 million from city reserves would result in a $136 credit on bills as a form of economic pandemic relief.

“We thought it would cover most of the people in the quickest, most efficient way,” said Coun. Phil Turnbull, who made the original motion to release the funds.

Councillors who first heard of the distribution plan earlier this month stressed that those who can afford to forego the credit should consider a donation to Community Warmth.

A general statement about the credit also suggests landlords that include utilities in rent collection should consider passing some savings onto tenants.

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