Repayment and Extension Agreements Executed in 2014

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Report to
Rapport au:
Finance and Economic Development Committee
Comité des finances et du développement économique
7 April 2015 / 7 avril 2015
Submitted on March 23, 2015
Soumis le 23 mars 2015
Submitted by
Soumis par:
Marian Simulik, City Treasurer/Trésorière municipale
Contact Person
Personne ressource:
Wendy Stephanson, Deputy City Treasurer/Trésorière municipale adjointe
613-580-2424, ext. 13192, [email protected]
Ward: CITY WIDE / À L'ÉCHELLE DE LA
VILLE
File Number: ACS2015-CMR-FIN-0014
SUBJECT: REPAYMENT AND EXTENSION AGREEMENTS EXECUTED IN 2014
OBJET:
ENTENTES DE REMBOURSEMENT ET PROLONGATION CONCLUES
EN 2014
REPORT RECOMMENDATIONS
That the Finance and Economic Development Committee receive this report on the
2014 Repayment and Extension Agreements executed as required by the Delegation
of Authority By-law.
RECOMMANDATIONS DU RAPPORT
Que le Comité des finances et du développement économique prenne
connaissance du présent rapport sur les ententes de remboursement et
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prolongation de 2014 signées, tel que l’exige du Règlement sur la délégation de
pouvoirs.
BACKGROUND
The Finance Department is responsible for the collection of all accounts billed through
the City’s Financial System. The City invoices for a variety of services such as
residential and commercial rents, Transit fare media, damage to City property, returned
cheques, salary overpayments, paid duty police service and property taxes. The
services mentioned are only a few examples of the hundreds of services or reasons for
which the City prepares and sends invoices.
The Revenue Branch has implemented a rigorous process for follow-up, prescribed
collection activities as well as partnering with three private collection agencies to collect
outstanding balances. To reduce the City’s financial risk in instances where the debt
cannot be paid in full, the City enters into a formal repayment or extension agreement.
DISCUSSION
Repayment Agreements
In 2014, the City invoiced approximately $158 million for a variety of services such as
residential and commercial rents, ice rentals, Transit fare media, damage to City
property, returned cheques, salary overpayments and paid duty police service. The vast
majority of accounts receivables were paid on time.
The Finance Department makes every effort to collect all accounts receivable due to the
City. Efforts include letters, telephone calls, service denial, accounts payable set-offs,
referral to City Clerk and Solicitor Department to initiate a claim and assignment to
private collection agencies. In some instances, for reasons that are often beyond the
City’s control, full or partial amounts due cannot be paid.
In accordance with section 25 in schedule “A” of the Delegation of Authority By-law No.
2014-435, the City Treasurer; the Deputy City Treasurer, Revenue; the Manager,
Customer Service and Collections; and the Program Manager, Collections and Cash
Handling are authorized to execute repayment agreements for amounts outstanding,
and the exercise of this authority is to be reported annually to the appropriate Standing
Committee.
During 2014, no repayment agreements were executed for accounts receivable.
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Extension Agreements
In 2014, the City billed approximately $1.9 billion for property taxes. The vast majority of
accounts were paid on time.
The Finance Department makes every effort to collect all property tax accounts due to
the City. Efforts include letters, telephone calls and prescribed collection activities in
accordance with the Municipal Act. In some instances, for reasons that are often
beyond the City’s control, full or partial amounts due cannot be paid. In accordance with
section 17 in schedule “A” of the Delegation of Authority By-law No. 2014-435, the City
Treasurer; the Deputy City Treasurer, Revenue; the Manager, Customer Service and
Collections; and the Program Manager, Collections and Cash Handling are authorized
are authorized to execute extension agreements for tax arrears and the exercise of this
authority is to be reported annually to the appropriate Standing Committee.
During 2014, 1 extension agreement was executed for property tax accounts.
Document 1, on file with the Deputy City Treasurer, Revenue, outlines the account with
the executed extension agreement in 2014.
RURAL IMPLICATIONS
There are no rural implications to receiving the information in this report.
CONSULTATION
The public consultation process is not applicable.
COMMENTS BY THE WARD COUNCILLOR(S)
There are no comments by ward councillors.
ADVISORY COMMITTEE(S) COMMENTS
This section contains any comments or recommendations made by one or more
Advisory Committees relating to this report.
LEGAL IMPLICATIONS
There are no legal impediments to receiving the information in this Report.
RISK MANAGEMENT IMPLICATIONS
There are no risk management implications to receiving the information in this report.
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FINANCIAL IMPLICATIONS
Financial implications were identified in the body of this report.
ACCESSIBILITY IMPACTS
There are no accessibility implications to receiving the information in this report.
TERM OF COUNCIL PRIORITIES
This meets Council’s priority with respect to Financial Responsibility.
SUPPORTING DOCUMENTATION
Supporting documentation is on file with the Deputy City Treasurer, Revenue.
DISPOSITION
This report is for information purposes only. No further action is required.