HomeMy WebLinkAboutTR 22/98�
��r �
�� � �
. . ��OF� � . . . � _ �
�
REPORT TO COUNCIL
FROM: a. A. Farorson DA1'E: lune 3, 1998
Director of Finence & Trcasurcr
REPORT NUMBER: TR 22-98
SUBJEC"f: Charging of Intercst on Overdue Accounts
RECOMMENDATION:
That Report No. TR 22-98 be received; nnd
That the Council of ihe Town of Pickering approve a policy of chnrging interest on overdue
ncwunis at the same rate ns lhet charged on overdue inxes, curtentiy 1.25 per cent per month,
compounded ennually, equalling l5 per cent per nnnum; and
That the eppropriate officials of the Town of Pickering be given authority to givic effect thereto.
ORIGIN: Director of Finance & Treasurer
AUTHORl1'Y: The Municipul Act
FINANCIAL [MPLICATIONS:
Adoption of the rccommendations es prcsented would huve rcsulted in udditianal rovenue to thc
Town over the pa4t 17 monlhs, buscd upon month�end balences, of up to 539,000. Such
revenues will be mtlected in the accounts of the Financc Department.
EXECU7'IVE SUMMARY:
71ie Town does not currently azsess a late payment penalry or charge on averdue accounts but
dces levy such a cherge on overdue taxes, It is felt thet the prnctice should be the snmc in both
instances.
BACKdROUND:
Most businesses end many govemments impose a inte payment pcnalty or charge on ovcrduc
paymanls, Others offer en early payment discount but IegislaUon applicable to municipalitics
prohibits this pmctice. Pickering imposes such a charge on overdue taxes, os do nll
munIcipalities. As with meny corporations, the size of the Town, in financiel terms at least, u
cetlain portion of billings for costs or services ere not paid wiUtin the typical 30-dny pnyment
period, In ihe cau of ihe Town over the last t7 months, month cnd balnnces outstnnding havc
rangul from epprox3mately S 113,000 to approximstely S546,000 fot en average of 5263,000.
�
�, ; � �
,,
�' r,�
,ik
�. 1. :"'` .,t.- `... � .. , `. ,, . ,.,. �
:'� } ' " . ' . ' . .
�� t �,' .. � � - , . �
ii
`, Repoit to Council 42/98 ' Dete: June 3,1998
Subject: � Cherging of lntercst on Overduc Accounts peB� 2
Uaing tha rccommended 1.25 per cent per month end assuming 30 daye past due, Uue would
result in eddidonal rcvenues of epproximetely 539,000. It is felt eppropriate W ruommend this
charge as an incentive W prompt puyment end to meke up for the interost inwme lost os a rcsult
of the funds not being eveilable Por invesiment. Finally, edoption of the recommendetions ends
the effect of prompt payers end the taxpaying public at Inrge, in effect, subsiditing ihou who do
nol pay in a timely fashion.
A'ITACHMENTS: N/A
PreP�d �Y� Approved / Endotsed By:
, `
(iillis A. Peterson � Giliis A. Paterson
GAP:dk:
Copy: General Manager
t:.�,t
1.:' 7 _
�{i�,' .�, y` .
! , FI `�
�'�` r s �
3.X+ L �. r _ . ..
Ft�� t }t
a � a *
4�x' � .-'}y �4 1 ; 1 � { . �
�`p*A� r . F S = . .
�:li }Gq�A i .. t S {1�;�. � J �: r ; � F �. 2
�� � � � y� ✓c f i F � � .
�� 7 .� � f a'� 3 "�- z �,� � � �;} 7 ..
,�4,��p4�.�,rl�Sa� { Y ,� � . 1 k�� k '� �( �.
.��.,3�#i� p ,p ��rqJt ?tY �5 - �� � i "t � q ' � j ��.
, �,,��j!�,��J(y'��� �M ��%�� � i R � � j i4' S _
�T'�V'�.,f.i� � 4�'dg �' . l G .
h fi'� yf R u _�� t� i ,+ t s. S 1 fi �� . . _
�S ri`s� Ft �rr i
�, � �#37�; Td,� e�:� r r � �e r � � �. - s
���'�� �F t 7�i��} a �c � ° ' ! r ; .F 1-_
rd��•���'�.!.� .•r('.:�f. � " �+
.w'_ _�,re...: . ....4r.� :�.:.�.0 . ..:... . _. .