Sheldon Peddle, the board of trade’s president, was reacting to the news the City of Corner Brook will be reducing the mill rate for general commercial and industrial businesses from 17 mills to 16.75 mills in 2017.
It’s been several years since Corner Brook’s business community got any sort of tax break, despite annual calls from business owners to lower the rate.
“It’s putting some money back into the pockets of small business owners so they can reinvest in their own local business,” said Peddle, one of two members of the public to attend Monday’s public meeting.
“We certainly applaud the city for that.”
Shortly after the meeting, one downtown businessman made his thoughts known via social media that city council could have done more.
“1.5 per cent reduction. Big deal,” Jim Parsons, the owner of Swirsky’s bar and chairman of the Corner Brook Downtown Business Association, commented in a Facebook post about the mill rate reduction. “Needed a bolder move.”
Peddle, meanwhile, said he hoped the next council will shave the business tax down further.
The tax cut affects around 550 businesses, or around 65 per cent of the businesses in Corner Brook.
The city does hope a rearrangement of its departmental structure will help stimulate the economy. The city plans to split the Infrastructure and Public Works Department into a Planning, Development and Engineering Department and a Public Works Department.
The current Community Development and Planning Department will become a division of the new Planning, Development and Engineering Department.
One of the advantages the city hopes to achieve in this is to better streamline the development application process. Peddle said any reduction in red tape would be welcome by the business community.
“In 2017, we hope to see some changes in policies and regulations that will make it a little bit easier for businesses to open up and current ones to grow and expand,” he said.
Government help
As part of his budget speech, Deputy Mayor Bernd Staeben called on both levels of government to help the economy of Corner Brook and the surrounding area.
He said Corner Brook will do its part to foster and encourage economic growth but urged the province to help exploit the local economic development opportunities to their full potential.
In particular, Corner Brook wants a solid commitment, along with timelines, for the new regional hospital construction project.
“Council believes there will be a strong growth in our economy and optimism in the business community once a firm announcement is made in regards to the new regional hospital,” said Staeben.
He also urged the province to work with Beothuk Energy to realize its plans to develop a wind farm in western Newfoundland, with a manufacturing facility based in Corner Brook.
The city would also like the provincial government to continue with long-term multi-year capital works funding models.
Staeben called upon both the provincial and federal governments to come through with funding help for Corner Brook to meet the federally mandated deadline of 2020 to have a wastewater treatment plant.
The project is currently expected to cost between $80-90 million.
The City of Corner Brook, through the continuation of imposing a water and sewer levy on property owners, anticipates having more than $11.5 million of its own money to contribute by 2020.
“While this fund will not fully meet all our financing needs, it will go a long way towards reducing any debt we are required to incur for this project,” said Staeben.
Budget highlights:
• The City of Corner Brook unanimously passed a balanced budget of $34,647,300.
• The residential and commercial mill rates for fully serviced properties will remain unchanged at 7.5 mils and 12.5 mils respectively.
• The only change in taxation rates is the general commercial business tax rate, which dropped from 17 to 16.75 mils.
• The City of Corner Brook will contribute nearly $250,000 in financial support and other assistance to arts, culture, business, recreation and sporting groups in 2017.
• The City of Corner Brook is allocating $1 million towards its share of capital projects in 2017. Any additional funds required to cover the city’s share will be borrowed.
• The budget allows for $600,000 to purchase vehicles and equipment. Included is $100,000 towards the replacement of a rescue truck for the Corner Brook Fire Department.
• Budget 2017 assumes debt-servicing costs of $5.59 million, with $140,000 of that covered by the provincial government. The remaining amount represents 15.73 per cent of the total budget, but is well below the municipal threshold of 30 per cent set by the provincial government.
More than half the amount, $2.79 million, is related to borrowing costs associated with the city’s water treatment plant and distribution system.
Source: City of Corner Brook
Sheldon Peddle, the board of trade’s president, was reacting to the news the City of Corner Brook will be reducing the mill rate for general commercial and industrial businesses from 17 mills to 16.75 mills in 2017.
It’s been several years since Corner Brook’s business community got any sort of tax break, despite annual calls from business owners to lower the rate.
“It’s putting some money back into the pockets of small business owners so they can reinvest in their own local business,” said Peddle, one of two members of the public to attend Monday’s public meeting.
“We certainly applaud the city for that.”
Shortly after the meeting, one downtown businessman made his thoughts known via social media that city council could have done more.
“1.5 per cent reduction. Big deal,” Jim Parsons, the owner of Swirsky’s bar and chairman of the Corner Brook Downtown Business Association, commented in a Facebook post about the mill rate reduction. “Needed a bolder move.”
Peddle, meanwhile, said he hoped the next council will shave the business tax down further.
The tax cut affects around 550 businesses, or around 65 per cent of the businesses in Corner Brook.
The city does hope a rearrangement of its departmental structure will help stimulate the economy. The city plans to split the Infrastructure and Public Works Department into a Planning, Development and Engineering Department and a Public Works Department.
The current Community Development and Planning Department will become a division of the new Planning, Development and Engineering Department.
One of the advantages the city hopes to achieve in this is to better streamline the development application process. Peddle said any reduction in red tape would be welcome by the business community.
“In 2017, we hope to see some changes in policies and regulations that will make it a little bit easier for businesses to open up and current ones to grow and expand,” he said.
Government help
As part of his budget speech, Deputy Mayor Bernd Staeben called on both levels of government to help the economy of Corner Brook and the surrounding area.
He said Corner Brook will do its part to foster and encourage economic growth but urged the province to help exploit the local economic development opportunities to their full potential.
In particular, Corner Brook wants a solid commitment, along with timelines, for the new regional hospital construction project.
“Council believes there will be a strong growth in our economy and optimism in the business community once a firm announcement is made in regards to the new regional hospital,” said Staeben.
He also urged the province to work with Beothuk Energy to realize its plans to develop a wind farm in western Newfoundland, with a manufacturing facility based in Corner Brook.
The city would also like the provincial government to continue with long-term multi-year capital works funding models.
Staeben called upon both the provincial and federal governments to come through with funding help for Corner Brook to meet the federally mandated deadline of 2020 to have a wastewater treatment plant.
The project is currently expected to cost between $80-90 million.
The City of Corner Brook, through the continuation of imposing a water and sewer levy on property owners, anticipates having more than $11.5 million of its own money to contribute by 2020.
“While this fund will not fully meet all our financing needs, it will go a long way towards reducing any debt we are required to incur for this project,” said Staeben.
Budget highlights:
• The City of Corner Brook unanimously passed a balanced budget of $34,647,300.
• The residential and commercial mill rates for fully serviced properties will remain unchanged at 7.5 mils and 12.5 mils respectively.
• The only change in taxation rates is the general commercial business tax rate, which dropped from 17 to 16.75 mils.
• The City of Corner Brook will contribute nearly $250,000 in financial support and other assistance to arts, culture, business, recreation and sporting groups in 2017.
• The City of Corner Brook is allocating $1 million towards its share of capital projects in 2017. Any additional funds required to cover the city’s share will be borrowed.
• The budget allows for $600,000 to purchase vehicles and equipment. Included is $100,000 towards the replacement of a rescue truck for the Corner Brook Fire Department.
• Budget 2017 assumes debt-servicing costs of $5.59 million, with $140,000 of that covered by the provincial government. The remaining amount represents 15.73 per cent of the total budget, but is well below the municipal threshold of 30 per cent set by the provincial government.
More than half the amount, $2.79 million, is related to borrowing costs associated with the city’s water treatment plant and distribution system.
Source: City of Corner Brook