City of Leduc Council Acts to Support Residents and Businesses During Pandemic

Monday, April 6, 2020

Property Taxes Reduced and Business Taxes Delayed

In light of the ongoing COVID-19 pandemic, the City of Leduc Council has approved a number of measures aimed at mitigating the pandemic’s financial impacts on residents and businesses. Specifically, the following measures have been enacted, effective immediately:

  • Previously approved tax increase has been eliminated;
  • Utility payment penalties will not be applied for the remainder of 2020, for both residential and non-residential account holders;
  • Tax penalties will not be applied for the remainder of 2020, for residential and non-residential ratepayers; and
  • Non-residential ratepayers are now able to defer tax payments until December 31, 2020 upon request.

“Council has clearly heard that residents and businesses in our community are suffering financial difficulties as a result of the ongoing pandemic,” said Leduc Mayor Bob Young. “As an organization, we are fortunate to be in a position where we are able to support our community and alleviate some of the hardship. We will continue to look for ways that we can help residents and businesses to navigate this time of uncertainty – and thrive when we come out of it.”

The municipality is projecting that it will need to use reserve funds and lines of credit to cover the costs associated with COVID-19. These include direct costs, such as overtime for essential services areas, materials and supplies, and capital costs, as well as indirect costs resulting from deferred utility payments, reduced fines, utility and tax penalty elimination, among others.

“We have taken a number of measures to ensure that we are as sustainable as possible while maintaining the services on which our residents and businesses rely,” said Acting City Manager Michael Pieters. “Thanks to ongoing initiatives to ensure we are fiscally responsible as an organization, we have a good foundation to continue to work with Council to address COVID-19 impacts in the short and long term. We are acting prudently to ensure that we are able to cover short-term costs associated with managing and mitigating the effects of COVID-19 and supporting our community during this time. I want to thank our staff, who continue to look for alternatives to maintain services while remaining financially and socially responsible.”

The municipality has already undertaken a number of cost-cutting measures, including the temporary layoff of approximately 100 casual staff and a hiring freeze, which will result in approximately $150,000 in savings until April 30, 2020. Continued reviews are underway to identify other cost-cutting measures.

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Eliza Bennett, Director Communications & Marketing

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