MOUNTAIN VIEW COUNTY - County council has re-allocated about $5 million budgeted earlier for bad debt expenses in 2020 that did not materialize.
The move came by way of motion at a council meeting earlier this month.
In the 2020 budget, council budgeted the money for potential increases to bad debt based on economic conditions at the time. However, the actual bad debt was considerably less than anticipated, making the re-allocation possible.
“At this time administration anticipates that the bad debt surplus will be roughly $4.75 million to $ 5 million,” said Robert Beaupertuis, director of corporate services.
Council has re-allocated $2.5 million to a bad debt reserve, $1 million to the roads reserve, and the remainder to the tax stabilization account.
The exact amount going into the tax stabilization account will be known at year end.
“I believe that is a way forward that will provide transparency to the public on these funds,” he said.
Bad debt can include taxes owed to the county but not collectable.
Meanwhile, council also passed a motion during the Dec. 9 meeting instructing administration to re-allocate $66,047 from provincial municipal sustainability initiative (MSI) grant funds to the re-chipping program.
Every year the municipality receives funds under the MSI program for capital projects.
“One of this year’s projects, the re-gravelling program, came in under budget by $57,368,” he said. “As well, $8,679 in interest has been accrued (for the total of $66,047 re-allocated).
All councillors attended the Dec . 9 council meeting, held by teleconference.
