By Patrick Newhook/December 16, 2021
While revenues are expected to decrease slightly, the mil rate will stay the same for residents and businesses in Mount Pearl.
That was a key point of the $52.2 million plan that was presented by finance committee chairman Jim Locke on December 14.
Mayor Dave Aker said despite the difficulties COVID-19 has caused, the city is committed to moving forward.
“We’ve faced tough decisions in this budget process to find savings that enable our city to manage expenses while also guaranteeing our residents and businesses continue to receive the premier municipal services they are used to,” said Aker. “Council recognizes how we have all been impacted by the pandemic, and Budget 2022 focuses on living in a post-pandemic reality, with ignited determination to propel our city into a prosperous future.”
The budget projects the city’s revenues to go down by $139,000 in 2022. Mayor Aker said that’s due to lower property assessments.
“One of the reasons that the revenue is down for this coming year is property assessments were down 2.1 per cent,” he said. “Council could have chosen to raise the mil rate, which would have offset that, however we saw the assessments coming in and we chose to pass on (enacting) a tax increase to the residents and the businesses here in the city of Mount Pearl.”
Water rates and commercial taxes will also stay the same.
“The investments and action items found within each of these themes demonstrate that council has clearly heard the message from citizens and the business community,” continued Aker. “They want to grow their businesses and their family while enjoying a comprehensive lifestyle that includes a full suite of services and opportunities. The City supports these values by delivering first class municipal services as well as community and recreation facilities.”
One key aspect of Budget 2022 will be community safety, said Locke, during his presentation. The city intends on increasing park patrol coverage, and is dedicating $150,000 to upgrading current surveillance systems.
The city is also investing $20,000 to look at ways to encourage young people and families to move into the city. Mayor Aker said that in order to keep growing, the city is going to need to curb the aging population trend.
“We want to somehow, if we can, reverse that trend,” said Aker, “One of the strategy outcomes this year is to start that discussion about how do we go about providing incentives for families to move into Mount Pearl.”
That move won approval from new councilor Chelsea Lane. “One thing that I am excited to see in this budget is attracting young families and reversing the aging trend,” she said. “This is very important and as a young mother, of course this is something that I can relate to.”
As part of the residential growth strategy, the spending plan includes upgrades to Kenmount Hill and a focus on developing trails and walkways, earmarking some $330,000 towards the City’s 60 plus kilometres of trails.
The city will also see money flow into modernizing infrastructure, ponying its funds on top of provincial and federal programs. All told, the City is budgeting some $3.5 million on updating and improving infrastructure. Another $100,00 will be allocated towards assessing the condition of its infrastructure.
Mount Pearl is more fortunate than many municipalities in that it has a large business base to draw upon for commercial taxes. Residential property taxes make up 30 per cent of tax revenue, while business tax comes a close second at 23 per cent and commercial property tax at 16 per cent.
“It’s the mix that we have in the city,” said Aker. “The combination of properties that are the 10,000 houses that are residential versus what we have in the commercial and business side of the city,” he explained. “We’ve always had a healthy commercial tax base in the city, but property versus business is two separate taxes on the commercial side, with our residents you’ve got a property tax and you’ve got a water tax.”
Locke’s motion to accept the motion passed unanimously.
“Budget 2022 is focused on restoring our community roots by enhancing our outreach, programming, and services” said Locke. “This budget competitively positions our city to embrace the future with measured achievable goals that support sustainable growth and development while balancing the best interests of our residents and businesses.”
