The Municipality of Chatham-Kent is hoping to provide some financial relief by pushing back the property tax due date for residents and businesses.
On Monday evening, council voted in favour of changing the 2020 interim tax levy date from May 1 to July 10.
According to a report by the municipality's financial department, the goal is to give residents some breathing room following the unforeseen impacts that the COVID-19 pandemic has caused.
"Administration recognizes the intense and severe financial hardship that has crippled businesses and instantly caused many residents to temporarily lose employment," stated the report. "The Municipality of Chatham-Kent is in an excellent financial position with a strong balance sheet. In these times of sudden economic despair, administration is proposing some temporary actions that will make a significant difference in citizen's ability to survive this temporary upheaval."
In addition, late payment charges on current year tax arrears have been waived from April 1 to July 10.
Payment due dates have also been changed to June 30 for business licences, dog tag fees, loan agreements, CIP agreements and accounts receivable. Late fees for these services are waived as well.
According to the report, the payment deferrals are estimated to cost up to $100,000 in lost revenue as the municipality's cash position is temporarily lowered.
"Overall, if “normal” returns in the next 90 days, we are now estimating the additional cost and loss of revenue to Chatham-Kent to be in the $2 million to $5 million range. Impacts to bank interest, transit, cultural facilities, libraries, and recreation facilities and sports field revenues will be significant," stated the report. "Final impacts to Chatham-Kent will depend on the length of the emergency and future federal and provincial cost-sharing decisions."