Property tax payments keep pace with 2019
The City of Saskatoon's property tax collection is on par with last year, despite businesses and residents having the option of deferring payment for up to three months without any penalty.
At the same time, more utility accounts are in arrears. According to the city, 13 per cent of utility bills are overdue by 30 days or more, compared to 7.8 per cent at the end of September 2019.
In an interview, the city's director of corporate revenue said that translates to about $3 million in additional outstanding bills, with the biggest difference being in those more than 120 days overdue — $1.1 million compared to $500,000 last year.
“I think while the numbers certainly are a bit concerning, when you're looking at that 120-day bucket, it's not surprising and it's something we all knew was coming given the economic circumstances we all find ourselves in,” Mike Voth said.
“What I'm thrilled with — and not surprised but generally happy about — is the willingness of people to believe us when we say that we want to work with that individual” to develop repayment plans.
City council approved the threemonth property tax and utility bill deferrals in mid-march, days after the province reported its first case of COVID-19. Saskpower also has a deferral program.
Voth said the difference between overdue property taxes and utility bills is likely due to there being little flexibility and powerful legislative enforcement tools for collecting property taxes.
“Did I think we'd be within one per cent (on tax collection)? That's better than I thought,” Voth said.
It is not clear how many people took advantage of the deferral options. Voth said the city isn't able to track that, largely because there was no need to apply for it.
The estimated cost of waiving late payment fees for utility accounts was estimated at $120,000 and the cost of the three-month penalty-free extension to the property tax deadline was expected to be $500,000.
While some business groups facing financial difficulties called for an extension of the deferral — the hotel association went further by asking for tax forgiveness — council declined to grant those requests.
Saskatoon is expected to finish the year in the black despite the pandemic, largely due to an influx of cash from the provincial government that freed up municipal dollars to cover a shortfall estimated at $13.8 million.