Explaining council’s direction, director corporate and community services Jo Shannon said the health and wellbeing of the community and staff have been central to council’s response to the emergency.
“Steps taken to respond to the event have and will continue to have a significant financial impact on our organisation,” she said at council’s monthly meeting on April 21.
“At the same time we acknowledge the financial impact on individuals and other organisations within our council area. Our approach is now focused on ensuring that measures put in place can be sustained over a three-to-six month period.
“Council’s Hardship Policy is key at this time, providing a framework to ensure that a fair and equitable approach is taken with those persons suffering genuine financial hardship. Council officers will work with ratepayers to develop a payment plan that works for both parties.”
Where hardship is determined, no interest will be charged on overdue rates and charges from 1 April to 30 September 2020. Other decisions include, subject to approval, payment deferral on commercial lease/licences for the period 1 April to 30 September 2020 with no interest. Businesses Rates and water billing - defer issuing of March 2020 water invoices by 4 weeks and extending payment terms. No new debt recovery action on businesses to be taken on overdue rates and water notices from 1 April to 30 September 2020; similar situations apply to residential ratepayers and community organisations’ lease/licenses fees.
Councillors emphasised it is “not a free for aIl”. Ms Shannon said the relief measures will have an impact on council’s financial position. “Firstly, deferring receipt of rates and charges will, in the short term, reduce council’s cashflow available to deliver council services,” she said.
“This will require a drawdown on internal reserves to fund this operation in the short term. These reserves would normally have earned interest and the estimated interest foregone is $5,000 to $12,000, depending on how many ratepayers apply for hardship and extended payment terms.”
Cr Paul Miegel praised council supporting businesses, “for businesses with ongoing expenses and no income – a few of them have adapted and continue – but there’s an awful lot that have been ceased due to no fault of their own”. “Any way we can support those businesses would be very commendable,” he added.
Cr Andrew Kennedy urged council to support the community and businesses. “All businesses are suffering,” he said. “Our lovely accommodation houses – motels are empty, no tourism at all.”
Deputy Mayor Shaun Whitechurch praised council staff for their involvement in the many facets associated with COVID-19 but called on council to make it as easy as possible application-wise when residents apply for hardship relief or any other matter to avoid inflicting more pain on them.
