The city is poised to waive interest and penalties on late tax bill payments for 60 days starting with the end-of-April instalment to provide relief during the coronavirus pandemic.

Depending on the uptake, the deferral of revenue is expected to make a dent of $500,000 to $1 million on the municipality, finance staff estimate.

But Mayor Fred Eisenberger suggests that’s the tip of the iceberg as the city faces dipping revenues and mounting expenses while it focuses on containing the spread of COVID-19 in a crippled economy.

The toll on the city is likely “in the millions,” Eisenberger said during a recent media update.

“I can’t put a number on it for you, but I know that our finance staff are working on that, and I’m sure in the next week or two, we’ll be able to put a more definitive number on that.”

In a report before council Wednesday, staff reinforce Eisenberger’s forecast, saying tax relief measures “are only one component of a very significant impact” the city will bear.

“Staff is developing tracking and projecting models to report an overall impact of the COVID-19 pandemic.”

The city has dedicated much of its resources on curbing the potentially deadly virus, with senior staff quarterbacking the effort from a specially struck emergency operations centre. Meanwhile, city facilities have been closed and programs suspended, except for essential services.

The question of pandemic-related financial woes — for taxpayers and city coffers alike — is to be discussed during council’s first “virtual” public meeting during the crisis Wednesday. Eisenberger said the public will able to watch via a livestream, but no details have been released yet.

It will be the first time council formally discusses business since approving the 2020 budget during an in-person session at city hall March 20. This year’s 2.9 per cent hike translates into an average increase of about $120 for a Hamilton household assessed at $380,000.

The proposed tax relief on Wednesday’s agenda addresses the penalty of 1.25 per cent that’s normally charged for missed payments on the first day of default. It also relates to interest of 1.25 per cent on the first of each month.

The proposed respite would waive those extra charges for those “experiencing financial difficulties” for 60 days for the April 30 instalment and 30 days for the June 30 amount.

But Eisenberger urged those who can pay to do so “because the city needs the cash flow.”

Roughly 83,000 taxpayers in Hamilton make their payments on the due date and not through the city’s pre-authorized payment plans or mortgage companies.

The 64,000 signed up for the pre-authorized system normally have to give the city two weeks’ written notice to cancel, but the proposed relief plan suggests reducing that to seven business days.

About 33,000 taxpayers pay through mortgage companies, which means the city can’t offer direct relief. But the same 60-day grace period is to be offered to private lenders remitting payments for clients.

For water bills, staff recommend waiving administrative fees and related penalty and interest charges starting the week ending March 20 until July 31.

Eisenberger also said council consider a proposed bylaw that gives bylaw officers the ability to dish out $500 fines for people who don’t adhere to “physical distancing” designed to curb spread of the virus.

“We still hear instances of groups playing in the parks and doing a pickup game of football or a pickup game of basketball, all of that is contrary to physical separation.”