Council approved a resolution to help people dealing with short-term financial challenges due to the COVID-19 crisis. It also increased the city's line of credit to ease cash flow if needed as a precaution. (File photo/battlefordsNOW Staff) 

By Angela Brown

In The Chambers

City defers property tax due date among provisions to help people dealing with COVID-19 challenges

Apr 15, 2020 | 8:58 AM

North Battleford lawmakers hope to relieve some of the financial pressure on residents and businesses impacted by the COVID-19 crisis.

Council approved a resolution at its meeting Tuesday that included extending the due date to pay property taxes without penalty to the end of August.

Mayor Ryan Bater says the city is considering all those suffering a loss of income, due to the province’s precaution measures in place.

“This is to provide people with much needed flexibility during this difficult time,” he said.

The city will also not disconnect people’s utility services due to non-payment for the interim until the end of May.

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Also in the resolution, the city is increasing its current operating line-of-credit held with Innovation Credit Union as a precautionary measure due to the COVID-19 situation.

The value will now be set at $7 million.

Mayor Ryan Bater said the increase will help the city manage its cash flow if needed.

“Right now the city has a $4 million line of credit. We are not using it. We’re just taking this measure just in case,” he said.

Finance director Steve Brown said the city is still in a healthy financial state going into this situation, but administration wants to make sure that, “we have access to sufficient cash to make sure city operations can adjust,… to have time to make necessary decisions,” if needed.

“It’s a precautionary item,” he said. “If we don’t use it, it doesn’t cost us a nickel.”

The city anticipates around a $1 million impact to its operating budget in 2020, due to decreased demand for its services as a result of shuttered businesses and city facilities.

The finance director mentioned during the meeting, since the city found many efficiencies and savings in its budget previously the city is in a strong position at the start of the COVID-19 pandemic, otherwise the situation could have been much worse.

Among the other items addressed to help ratepayers, the resolution indicated the director of finance be authorized to waive penalties on overdue utility accounts until May 31 for customers that have had their income substantially impacted by the COVID-19 crisis, and that a report on fees waived be provided to council in early June.

As well, the director of finance is now authorized to reduce the Tax Installment Payment Plan Service (TIPPS) and the Water Installment Payment Plan Service (WIPPS) payments up to 50 per cent until May 31 for those on the programs who have had their incomes negatively impacted by the COVID-19 crisis. A report on changes to both TIPPS and WIPPS will be provided to council in early June.

Council will again review the specific items in the resolution for consideration at the end of May that have end dates set for that time.

The mayor mentioned people need to keep in mind eventually they will still need to pay the balance outstanding for any payments deferred for the short term.

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angela.brown@jpbg.ca

On Twitter: @battlefordsNOW