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sn COUNCIL

DEC 6 1876

Mayor and Council December 3rd, 1976 °

L.D. Pollock
City Administrator

Re: Interest Rate - Arrears and Delinquent Taxes

Earlier this year, Council ‘cosidered the matter of interest rates on prepaid
taxes. In addition to this we are now required to set, by By-law, the rate
of interest to be charged on Arrears and Delinquent Taxes. The Act previously

set a rate of 8%, however it has now been changed so that municipalities can

set their own rate up to a maximum of 12%. .

Some municipalities have gone to the maximum of 12%, however in view of the
dropping trend in interest rates, other municipalities are staying around

the 10-11% mark.

I would recommend that we go to 11% as we are presently paying 9% on prepaid
taxes. If interest rates continue to moderate we may have to lower our interest

rate on prepaid taxes.

The attached By-law has been prepared setting the interest rate at 11% on
Arrears and Delinquent Taxes and I would recommend that Council adopt this

By~law °