BARRHEAD - It is best not to bite the hand that feeds you.
That is what County of Barrhead councillors decided at their June 3 meeting, when they approved the cancellation of nearly $700 in finance charges, excluding any interest accrued against Alternative Land Use Services (ALUS) Canada. In a separate motion, council instructed the Policy Committee to review the municipality's Collection of Accounts Receivable Policy (FN-004).
Originating in Manitoba, ALIS is a community-led, farmer-delivered initiative that supports stewardship activities on agricultural lands. Alberta chapters began to join in 2010, with the County of Barrhead joining their ranks in 2020 when it essentially rebranded Highway 2 Conservation (H2C) under the new banner.
The reason the municipality opted to join the group is that it provides an additional source of revenue to help farmers, producers, and other landowners initiate environmental stewardship projects on their land in partnership with the municipality by securing grants on their behalf.
Finance director Tamara Mozahan said ALUS' process is for the municipality to receive money from ALUS Canada; they must submit an invoice once a project has been approved.
On Jan. 31, the county sent an invoice to ALUS Canada for $46,243. The invoice was due March 2. A month later, the municipality charged $693.65 of interest to the organization's account.
A day later, ALUS paid the invoice minus the interest charges.
"We have been suppressing interest charges for some municipal customers, such as the Town of Barrhead and Woodlands County, but that practice hasn't been built into our invoicing policy," Molzahn said.
She noted that under the municipality's Policy FN-004 (Collections of Accounts Receivable), the county manager can suspend or waive finance charges up to $200.
Molzahn recommended council waive the interest penalty and suggested that the policy committee review the Collection of Accounts Receivable Policy.
Reeve Doug Drozd agreed with the admin's recommendation.
"To punish them, as a grant provider, for giving us money doesn't make a lot of sense, especially when we want them to give us more," he said.
Barry Kerton, TownandCountryToday.com
