THE CORPORATION OF THE CITY OF PORT COQUITLAM C ¢ J N C

DEC 17 1984

TO: Mayor & Council. DATE: December 13, 1984.

FROM: Administration Committee.

SUBJECT: Interest on Prepayment of Property Taxes.

RECOMMENDATION:

That we repeal by-law 1874 which requires us to pay in
prepaid prior to May lst, from the date of payment to the

at the rate of 12%.

terest on taxes,
first of July

BACKGROUND & COMMENTS:

The lugic behind the paying of interest on tax prepayments is that at
the start of the year the City has had to borrow money at prime rate.
from che bank and.if some property owner's wish to prepay their taxes,
we should pay them at least the same rate as we pay the bank.

For the last five years, we have not needed to borrow at all and have
the present 124.

changed the rate from being tied to bank prime to

ed to borrow and Provincial regulation now requires

As we have not need
held over 60 days at rates revised

us to pay interest on payments
quarterly.

Se ne rE

See meee a eer met

City Treasurer.