Richard Gleeson
Northern News Services

NNSL (May 12/99) - City council on Monday provided ratepayers with a way to arrest snowballing interest added to back taxes.

Council adopted a policy that allows those with tax arrears to enter a payment plan with the city which almost halves the interest charged on outstanding taxes.

Currently, the city charges 1.8 per cent each month, about 24 per cent annually, on taxes more than 60 days in arrears.

Those opting into the payment plan would pay one per cent a month, but only those with taxes more than a year in arrears can do so.

Coun. Robert Slaven said the key to the new policy's success is letting people know about it.

"We'll have to publicize it, say to people 'Look, if you've got any problems, you should come in here right away.'"

Those opting into the plan will be required to make minimum monthly payments of 1.5 per cent of the total outstanding bill (including interest).

The city also gave staff the go-ahead to request a number of properties more than four years in arrears (see list) be auctioned off to recoup back taxes.

Owners of those properties can block the sale of properties by entering into a plan before the auction. After it, the can get their property back only by paying taxes in full.

According to finance department estimates, the new policy is expected to cost the city $45,000 this year in interest charges.