COVID-19: Council backs tax relief as city financial woes mount

Finance staff expect to give council accounting of damage April 15

Yorkregion.com
April 9, 2020
Teviah Moro

During Hamilton city council’s remote council meeting on Wednesday, Coun. Nrinder Nann asked whether the city had any ability to compel landlords to “practise some COVID kindness” to hard-pressed tenants.

During Hamilton city council’s remote council meeting on Wednesday, Mayor Fred Eisenberger said he expects federal and provincial funds “backstopping” municipalities will eventually flow with the initial emphasis on shoring up individuals and businesses.

Hamilton taxpayers hard-pressed to make payments have 60 days of grace for penalties and interest during the COVID-19 financial stranglehold.

Council approved the respite measure Wednesday as layoffs and business closures continue to take a heavy toll.

Interest and penalties are waived for 60 days for those who can’t make the April 30 instalment, and for 30 days for the June 30 due date.

But there’s no wholesale forgiveness of payments --nor does it waive penalties for arrears that mounted before the declared public health emergency, finance boss Mike Zegarac told council during their meeting held via the internet.

“We’re trying to target this to the crisis,” Zegarac said, noting Hamilton and other cities have relayed concerns to senior levels of government about mounting pandemic-related financial pressures.

“We are capturing how this crisis is affecting municipalities,” he said, adding finance staff expect to present a tally to council April 15. “We’re all predicting year-end deficits.”

The deferral of tax revenue alone is expected to make a dent of $500,000 to $1 million on the municipality, finance staff estimate.

Mayor Fred Eisenberger said he expects federal and provincial funds “backstopping” municipalities will eventually flow with the initial emphasis on shoring up individuals and businesses. “I would say it’s a timing issue.”

Eisenberger, however, reiterated his concern that renters have been left out of the suite of financial assistance programs.

Coun. Nrinder Nann asked whether the city had any ability to compel landlords to “practise some COVID kindness” to hard-pressed tenants.

Zegarac said “the short answer is no,” noting the city could oblige landlords to pass on reductions to tenants if property taxes dipped by more than 2.49 per cent.

Late last month, council approved a 2020 budget hike of 2.9 per cent, which works out an average increase of about $120 for a Hamilton household assessed at $380,000.

For those who enrolled in pre-authorization payment plans, withdrawals will continue, but they can give the city seven days’ notice to cancel.

The city is also waiving penalty and interest charges added to the tax roll --examples include water arrears or property standards fees --until July 31.

For more information about the program, contact the city at 905-546-2489 or email taxsupport@hamilton.ca.