We have budgeted $5000 in the non-collection for property taxes account. However there is approximately $13,000 in outstanding property taxes for Oil companies that we suspect are uncollectible. Accurate Assessment is studying what oil companies are currently affecting municipalities by not paying property taxes. They will aslo be attemping to identify and inform municipaliies of any companies that may be entering into Companies Creditors Arrangement Act protection, or the receivership process.
Based on this information, Administration would advise Council that it is appropriate to set up an allowance for doubtful accounts that would accommodate the amount currently outstanding for industry. As indicated above, this is an $8,000 expense over the budgeted amount.