Martensville residents who’ve been financially hard hit by the COVID-19 pandemic could get a break on interest penalties for property tax and utility accounts currently in arrears.
If a homeowner is in that position, they can make a request at City Hall for a reversal of interest charges.
Martensville City Council passed a resolution at its regular meeting on Tuesday, March 16 to provide city administration with the authority and discretion to approve interest penalties on overdue residential accounts on a case-by-case basis.
The resolution was proposed following a discussion of the issue by city council at a committee of the whole meeting a week earlier, on March 9. At that meeting, the city’s Director of Corporate Services, Leah Bloomquist, told councillors there have been some requests from property owners to reverse interest on property tax and utility accounts that has been incurred due to late or no payments.
In normal years, requests of this type are regularly denied. The only time interest charges are reversed is if there is an error made by city administration in the processing of the payment.
A city bylaw requires city administration to charge interest penalties on overdue accounts as an incentive for prompt payment.
But, this year is not a normal year.
Bloomquist said there have been a larger-than-usual number of requests by homeowners for interest charges to be reversed. And she expects even more in the months ahead.
Virtually all these requests cite the pandemic, and a subsequent decline in household income, as the reason.
“The requests have been more frequent and, in some cases, more insistent,” stated Bloomquist in her report to City Council. “At present, Council would have to receive, review and approve these reversal requests.”
City administration asked council for direction on the issue. Currently, administration’s options include: recommending the property owner submit a formal request to Council for a decision, or informing the property owner that interest charges cannot be reversed under any circumstances.
During the March 9 committee of the whole meeting, several councillors expressed sympathy for homeowners struggling to pay bills during the pandemic.
However, councillors were adamant the policy change must be temporary, lasting only one year.
A consensus among councillors was reached at the March 9 meeting to allow some leniency because of the pandemic; and provide city administration with the discretion to reverse interest in certain cases where it can be shown the pandemic is the primary reason for the late payments.
The resolution adopted by council at the March 16 meeting provides the city administration with retroactive discretion on cases dating back to November 1, 2020. Further penalties on those accounts will also be suspended until July 31, 2021.
A month ago, Martensville City Council moved to provide interest relief on overdue accounts for businesses in the city.
Two bylaws were passed at a council meeting on February 16 to provide interest relief on overdue business accounts for both property taxes and water and sewer utilities. The city will forgive interest charges on overdue business accounts retroactively to November 1, 2020. The policy will continue until July 31, 2021.