A program to lend money to employees has been rescinded by High River Town Council.

Turns out it is actually illegal for municipalities to lend money to employees through programs like this.

In 1992 the employee computer purchase plan was approved to encourage employees to use computers effectively.

The maximum loan amount is $2,500 and is repayable over a two year period by payroll deductions and is added to the employees T4 as a taxable benefit.

This was not an uncommon practice in its time, but after discussing the nature of this policy with Municipal Affairs, Administration was advised that it contravenes the Municipal Government Act.

Any staff that have recently participated in the program will repay their loans as per the payment schedules and no further loans will be accepted.

 

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