City contemplates a break for those that pay their taxes in increments

With a bit of hot water starting to build around the steps of City Hall, council has given some second thoughts to their plans to change the collection methods of the city utility bills.

This year, the city has changed the dates that the utility bills went out, no longer part of the property taxes package in July, the utility payments complete with at 14% hike, went out in February, with a 10% discount promised to those who paid by March 31st.

The city is hoping that the early influx of cash will help them with the annual shortage of cash that seems to run up in the spring and early summer.

The only problem is that nobody it seems thought of those folks that pay their taxes on a monthly or quarterly basis, with the new March 31st deadline, they would lose out on the ten percent discount and they weren't too happy about, as those councillors who answer their phones could attest to.

Council has tasked city staff to look into the matter and come up with some recommendations. Considering the high rate of taxation in Prince Rupert compared to the rest of the Northwest, the latest figures available show that Rupert pays 847 dollars in utility fees, compared to the 326 of Terrace and 438 of Smithers.

Council is not doubt mindful of causing the local taxpayers any more anxiety than they already have, as they tap out their bank accounts and give the city a little breathing room on their own finances.

The Daily News covered the issue with a report in Friday's paper.

COUNCIL LOOKING FOR WAY TO SOFTEN UTILITY BILL BLOW
By Leanne Ritchie
The Daily News
Friday, March 02, 2007
Page one

Prince Rupert city council decided it does do not want to penalize people who have been paying their utility bills on a monthly or quarterly basis but who are unable to make the March 31 utility bill deadline.

Coun. Joy Thorkelson said Monday that she had been receiving a number of phone calls from people who had been paying their utility bills on a quarterly or monthly basis, including a few people living on pensions, who were now going to be punished by losing their 10 per cent discount if they couldn’t come up with $800 by March 31.

“Only people who can pay their whole bill with one month’s notice get the discount,” said Thorkelson.

“People are saying that’s unfair.

Last year, the city decided to remove its utility billing from the annual tax payments and send out the bills in February.

They also raised utility bill rates by 14 per cent, but offered a 10 per cent discount for people who could pay by March 31.

The city changed the way it collects for utilities to solve its shortage of cash between spring and summer, when property taxes are collected.

In the past, the city would have to borrow money to get it to the point where tax money started coming in.

However, no plan was initially put in place to deal with people who pay on a monthly or quarterly basis.

“If someone is paying on a monthly or quarterly basis, they are no longer getting the 10 per cent discount,” noted Thorkelson.

Council seemed to agree this was unfair and staff agreed to look at the situation.

“It’s an excellent point. I am with you,” said Prince Rupert Mayor Herb Pond. “If someone is paying on a monthly basis and we want them to pay all at one shot, it can be problematic.”
Bills went out in the middle of February. For a single-family home, the water bill was $303.60, the sewer bill was $267.60 and the garbage bill was $276, for a total of $847.20. If people pay by 4 p.m. March 30, they will receive a discount of $84.72.

Compared to the rates for Terrace and Smithers, Prince Rupert’s rates are significantly higher.
According to the Union of British Columbia Municipalities rates survey, Terrace residents pay $326.10 in utility fees and Smithers residents pay $438.52 (although keep in mind, these numbers are dated for two years ago.)