In response, Mayor Charles Pender has said the federation’s perspective paints an incomplete picture of the municipality’s fiscal realities.
The business group issued a press release Friday outlining its pre-budget submission to the city. In it, the federation’s Newfoundland and Labrador Director of Provincial Affairs recommended spending restraint in Corner Brook.
According to Vaughn Hammond, the city’s audited financial statements showed real operating spending increased by nearly 20 per cent in 2015. He said Corner Brook’s fiscal future is in jeopardy as it confronts future cost challenges related to wastewater, waste management and electricity.
Further, Hammond charged the city is relying too heavily on commercial property owners to support its current spending.
“The city is on a similar fiscal path the provincial government chose many years ago and needs to act now before it’s too late,” stated Hammond in the release. “The city has to reduce spending and pass the savings on to commercial taxpayers.”
The City of Corner Brook issued its own response to the federation’s release later Friday. Prior to releasing a prepared statement from the city, Mayor Pender told The Western Star the federation had not consulted the city prior to publicizing its report and said the report does not accurately reflect the impact of the city’s budget on taxation.
What is not included, said Pender, are several sources of revenue that were also generated in addition to increased expenditures incurred by the city.
For example, the expenditures associated with the city taking on 911 services were recouped from the provincial government, while there were also revenues from the Corner Brook civic centre that have nearly offset the added costs of running the centre.
As for the increase in spending for the city’s new water treatment plant, Pender said that spending was well planned, well known and well supported, so it should not have taken anybody by surprise.
According to Pender, the City of Corner Brook’s operating expenditures increased by only 2.46 per cent, when all those revenues are accounted for, and not by the nearly 20 per cent as cited by the federation.
As for businesses being unfairly taxed, Pender said is not what has been communicated directly to the city from Corner Brook’s business community. He said this is the time of year when businesses, like anyone else, will try to state their case for the upcoming municipal budget to lower tax rates.
The Greater Corner Brook Board of Trade is currently conducting its own survey of city businesses in preparation for making its pre-budget consultation to the city.
Sheldon Peddle, the board’s president, said his group’s survey will be more in-depth than what the federation has done.
“What we’re not seeing from organizations like this are suggestions on what should be cut and that is the more complicated discussion that needs to be had,” said Peddle.
The mayor said he is looking forward to seeing what the board of trade’s submission is and how it jives with what the federation has to say.
In response, Mayor Charles Pender has said the federation’s perspective paints an incomplete picture of the municipality’s fiscal realities.
The business group issued a press release Friday outlining its pre-budget submission to the city. In it, the federation’s Newfoundland and Labrador Director of Provincial Affairs recommended spending restraint in Corner Brook.
According to Vaughn Hammond, the city’s audited financial statements showed real operating spending increased by nearly 20 per cent in 2015. He said Corner Brook’s fiscal future is in jeopardy as it confronts future cost challenges related to wastewater, waste management and electricity.
Further, Hammond charged the city is relying too heavily on commercial property owners to support its current spending.
“The city is on a similar fiscal path the provincial government chose many years ago and needs to act now before it’s too late,” stated Hammond in the release. “The city has to reduce spending and pass the savings on to commercial taxpayers.”
The City of Corner Brook issued its own response to the federation’s release later Friday. Prior to releasing a prepared statement from the city, Mayor Pender told The Western Star the federation had not consulted the city prior to publicizing its report and said the report does not accurately reflect the impact of the city’s budget on taxation.
What is not included, said Pender, are several sources of revenue that were also generated in addition to increased expenditures incurred by the city.
For example, the expenditures associated with the city taking on 911 services were recouped from the provincial government, while there were also revenues from the Corner Brook civic centre that have nearly offset the added costs of running the centre.
As for the increase in spending for the city’s new water treatment plant, Pender said that spending was well planned, well known and well supported, so it should not have taken anybody by surprise.
According to Pender, the City of Corner Brook’s operating expenditures increased by only 2.46 per cent, when all those revenues are accounted for, and not by the nearly 20 per cent as cited by the federation.
As for businesses being unfairly taxed, Pender said is not what has been communicated directly to the city from Corner Brook’s business community. He said this is the time of year when businesses, like anyone else, will try to state their case for the upcoming municipal budget to lower tax rates.
The Greater Corner Brook Board of Trade is currently conducting its own survey of city businesses in preparation for making its pre-budget consultation to the city.
Sheldon Peddle, the board’s president, said his group’s survey will be more in-depth than what the federation has done.
“What we’re not seeing from organizations like this are suggestions on what should be cut and that is the more complicated discussion that needs to be had,” said Peddle.
The mayor said he is looking forward to seeing what the board of trade’s submission is and how it jives with what the federation has to say.
