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Council debates higher deposits on utilities

Sep 27, 2016 | 7:59 AM

Debate was sparked in council over a suggestion to increase security deposits for new utility accounts.

David Gillan, North Battleford’s director of financial services, suggested to increasing the deposit from $150 to $300, ultimately pumping the payment to $400 on Jan. 1, 2017.

Gillan asked council to support an amended by-law at city council Monday Sept. 26 to reflect the increase.  

According to the director, delinquent payments are a major concern in North Battleford and the onus of payment falls to landlords.

“I am dealing with home owners about this issue on a weekly basis,” Gillan said. “It isn’t just an every now and then thing. A lot of times a tenant will be with one owner for four or five months, build up a bill and leave. Then they’ll go to another owner and do the same thing. We put the bill on the owner and now this person is back in business again and I think that’s wrong.”

North Battleford Mayor Ian Hamilton strongly disagreed with the increase. He said the hike wouldn’t be fair and the city shouldn’t get involved.

“We talked a lot about this deposit when we passed it before and it poses a huge barrier to those on social assistance,” Hamilton said. “They simply don’t have the access to enough funds to pay for all the deposits … I also don’t see why we are taking on responsibility for the owners’ business decisions”

Hamilton said owners could require tenants to pay monthly utility bills along with their rent. He also suggested those who own multiple units add $5 dollars a month to the rent.

“I don’t understand why we are the issuers of credit. Why is it not on the landowner to do the credit checks?” he asked.

Gillan said often times people apply for utilities on behalf of others.

“We’ve had situations of people coming in and saying they are renting for themselves but really it is for someone else who has bad credit with the city,” Gillan said. “There are a lot of administrative things we need to improve. Tracing people’s credit history is on the city because we shouldn’t be giving people credit who don’t pay their bills.”

Council suggested monthly bills but Hamilton disagreed arguing it would cost the city too much money.  

After a 30 minute discussion, council ultimately decided to receive the amendment for information but to conduct more research by the next council meeting. 

 

Greg Higgins is battlefordsNOW’s city municipal affairs and health reporter. He can be reached at ghiggins@jpbg.ca or tweet him @realgreghiggins.