Number of city utility and tax accounts in arrears has dropped

By COLLIN GALLANT on January 28, 2022.

cgallant@medicinehatnews.com@CollinGallant

The number of city utility and tax accounts in arrears has dropped from the worst of the pandemic in early 2021, a city committee heard Thursday, but the number facing a disconnection warning or seeing amounts transferred to tax bills has grown.

The matter was presented to the city’s corporate services committee as a point of information and update regarding $900,000 set aside for utility customers left in difficult straights by the pandemic economic slowdown.

About $750,000 of that money, allocated to the Community Warmth Program, was paid out last year and the remainder will likely be spent by the end of winter, administrators said.

“They’ve decreased due to COVID and some of the support that city has provided,” said Dennis Egert, the city’s managing director of corporate services.

Background information provided states the number of the city’s 30,000 utility accounts in arrears decreased from about 19 per cent in early 2021 to about nine per cent at year end.

Correspondingly, the dollar total amount of outstanding payments dropped, but that includes $1.14 million that was moved from utility to tax accounts.

Since the city is both tax authority and the utility company, it has the ability to move arrears on to the other account to better ensure payment.

Administrators also engage the account holders to enter into set payment plan arrangements, the popularity of which rose by 15 per cent last year to 5,900 accounts.

Chair Coun. Robert Dumanowski said the collection policy exists for a reason, but he was concerned about the timeline now with supports running out.

“If we hadn’t had that (support) in place, where would we be?” he said.

“As it goes away, and we’re still in a fluid environment, what happens?”

Administrators said the city froze tax increases in 2020 and 2021, provided a blanket $138 credit to all utility account and close to $1 million for the charitable sector. The total “COVID Relief” measures from 2020 and 2021 totalled more than $12 million that council allocated from reserves.

“Overall, those who needed help were supported and without those supports, we’d be in a worse position that we are,” said Egert, who lauded customers who donated their credit back to the Community Warmth Program.

“It shows that some are hurting more than others in the community.”

The number of property owners in tax arrears also dropped, but those entering a four-year process before a property could be sold at auction increased.

In total, $1.7 million was owed at Dec. 31 on tax accounts – about $1 million less than in a similar time-frame in the 2020 tax year. That figure also included portions of a now-cancelled provincial grant to cover taxes on its local properties.

Accounts that move overdue in any year enter a four-year process before they can be sold at auction, if needed, to repay the account.

Administrators expect 12 such properties will be subject this year – files dating back to 2018 – and the number of liens and new files increased slightly over last year.

Currently, 208 properties face such a tax notification if bills are not paid by March 31.

City finance director Lola Barta said accounts are often cleared up as the files progress, and the department will provide options to owners.

“We want to able to make sure the customer is able to make their payments so that we don’t have to go to auction,” she said.

Administrators also stressed that money is still available in the community warmth program budget for one-time help to settle accounts. Inquiries should be made through the customer service department.

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