Late Fees Waived Present Financial Hit to Township

In response to the challenges presented by COVID-19, in mid-March the township made the decision to waive all late payment penalties for any invoices for property taxes and water/wastewater bills due during the COVID-19 municipal office closure timeline. Residents can continue to pay invoices in all regular options with the exception of cash. Later in the month the County of Peterborough moved to defer any interest and penalties up to May 31, 2020. The province has also approved a 90-day deferral of the quarterly education property tax remittance to school boards.

These decisions have financial implications for the township.  On April 1, the municipality experienced a revenue loss of $25,620 for the waiving the late payment penalties.  Over the past three years, the average penalty/interest payment penalties collected by the township were $14,000/month (property taxes) and $2,000/month (water & wastewater) and in 2019, the amount billed in April for these fees totaled $18,150.

These revenues form part of the annual Operating Budget which offset expenses such as allocated wages for tax collections and arrears, bailiff and tax sale administration, notices, postage/courier fees, and tax rebates for vacancy, charities, etc.  Penalty and interest revenues exceeding budgeted amounts at year end are carried forward as an operating surplus to mitigate the future municipal tax rate or transferred to the water and wastewater reserves to mitigate future utility rates, where applicable.

In addition, the Parks & Facilities department have estimated a $35,000 loss in rental revenues due to the closures at the CMCC, Old Millbrook Arena, Old Millbrook School and the Municipal Office.    Revenue and expense assumptions built into the budget will likely face more challenges in the months ahead.  KG

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