Town of Strathmore waives transfer to tax fee on past due utility accounts

By John Watson, Local Journalism Initiative ReporterStrathmore Times

Thu., Jan. 27, 2022timer2 min. read

The Town of Strathmore is waiving the transfer to tax fee for the balance of 2022 on past-due utility accounts.

Lisa Gregory with the Town of Strathmore Corporate Services explained that given the current circumstances surrounding COVID-19, it would be unwise to continue with the fee instated.

“What we want to do is waive the transfer to tax fee and not disconnect anybody’s water during the pandemic,” said Gregory.

“For COVID-19 and for health, we really shouldn’t be turning off anybody’s water right now and when we do that, we don’t want it to transfer to taxes and have them incur an additional fee.”

The transfer to tax fee was in the amount of $54.62, and according to administration, past due utility account transfer charges are a minor source of revenue for the Town.

Waiving the fee will not have a negative financial impact on the Town, as the fee only applies to roughly 20 accounts.

Administration typically does a water disconnect after two months of non-payment on a utility account in non-winter months. Due to ongoing pandemic circumstances with health precautions in place, it was deemed that water shut off for collection purposes was no longer practical.

Ultimately, the waiving of the fee will allow administration to transfer past due utility amounts to a property owner’s tax account and maintain the transfer on a monthly basis so as to maintain up to date past due amounts on a given property.

Town of Strathmore council had previously made a motion regarding the waiving of the transfer to tax fee during the May 19, 2021 council meeting.

Penalty due dates were waived by the Town in 2020 on a blanket basis for all utility accounts, which caused an increase in the utility accounts receivable and a delay in cash flow. According to administration, this made it difficult to administer applicable charges.

Regarding utility accounts that are two months past due, the collection procedure by the Town is to either transfer the amount owing to the property owner’s tax account, or to do a water disconnect, the latter of which is unable to be completed during winter months.

Councilor Brent Wiley motioned to waive the transfer to tax fee following the presentation to council by Gregory. The motion was passed by council without further debate or question.