At the request of several lower-tier municipalities, Grey County is looking to waive penalties for late county tax payments until September.
"A number of the municipalities have asked if the county could provide some relief for the June payment. That is the second instalment that is due to the county,” said Kevin Weppler, during a Grey County committee of the whole meeting held virtually on April 9.
The nine municipal partners in Grey County have each deferred tax payments or waived penalty fees for residents amid the COVID-19 shutdown. This is creating a slight cash flow problem as the municipalities are still obligated to make payments to both the county and the school board.
Earlier this month the provincial government gave municipalities a break on submitting their school board taxes, deferring the June payment until September.
Since that decision, many of the municipalities have called on the county to make a similar move. However, according to Weppler, the Municipal Act makes deferring the payments entirely, a bit more difficult.
“The Municipal Act is written a little bit differently when it comes to the county and that upper-level tier commitment,” said Weppler. “However, I am working towards getting it set up so those that can't make these payments would remain interest-free for those 90-days and in essence the payment wouldn’t be required until September.”
Despite the COVID-19 setbacks, Weppler reports that all nine of the county’s municipalities were able to make their March payment to the county on-time and in-full.
Weppler says by removing the interest charges on the upcoming June payment, it allows the municipalities that are able to make their payment to do so, as opposed to deferring the payment entirely.
The county is hopeful that the lower-tier municipalities will make their payments on time, as any payment deferrals will have an impact on the county’s cash flow.
“It is a little bit easier of a way to handle it through the bylaws, but that is what we are working through now and looking at cash flows,” Weppler explained. “We may have to call in some of our investments that are coming due, but I believe the county can do this.”
Once the department of corporate services has charted a plan forward, it will communicate its plan to the lower-tier municipalities’ treasury department.
