But even without the numbers that he was later given, Pender said he could only see a positive impact.
The partnership is the outcome of a fiscal framework review that has been ongoing since 2013 and will provide municipalities with an additional investment of more than $46 million over the next three years, annualized at approximately $25 million thereafter.
Pender particularly likes the revenue aspects of the partnership — the HST rebate and sharing of provincial gas tax revenues.
“As you can imagine, we spend significant money on purchasing products and services and of course the HST is a significant cost to us.”
The city already gets a federal rebate on the goods and services portion of the sales tax, so a provincial rebate will be “greatly appreciated,” said Pender.
While he’s not sure how the gas tax will be divided, Pender said even if the city gets 10 per cent it will result in significant revenues.
The extra money will allow the city to do a number of things without having to raise taxes, something Pender said has been important as it works to maintain the rate as it is.
He also likes the accountability clause to ensure that municipalities that have outstanding taxes have a plan to collect those taxes and that they invest the monies they receive in infrastructure and other priorities.
The partnership also mentions a Municipalities Newfoundland and Labrador request for an accommodations tax and an invitation for MNL and Hospitality Newfoundland and Labrador to develop a joint proposal that has the support of both sectors’ stakeholders.
The city already has a memorandum of understanding with local hoteliers on bringing in a levy.
“If government is willing to go down that road, we’re more than ready,” said Pender.
Money collected through the tax would go into a marketing fund and be directed by a board consisting of hoteliers and the city.
“That would be huge for marketing Corner Brook,” said Pender and noted the meeting and convention space and the sport tourism opportunities available.
With the provincial budget coming down today, Pender said he wasn’t surprised in the province’s timing of the announcement.
“They’re quite aware of the situation and the dire straits that many municipalities are in.”
Revenue impact for Corner Brook
2015-2016 — $232,301
2016-2017 — $913,545
2017-2018 and beyond — $1,530,780
The allocations are on a per capita basis and reflect the combined amounts annually for the HST rebate and provincial share of gas tax.
Source: City of Corner Brook
Overview of the new community sustainability partnership
Revenues
Rebates on the provincial portion of the harmonized sales tax (HST)
Sharing of provincial gasoline tax revenue
A three-year commitment to municipal operating grants at the current level of $22 million annually
Capacity Supports
Government will invest approximately $1 million to provide funding for three regional service boards to engage regional water and wastewater operators. These operators will work with a pilot group of communities to address their water and wastewater infrastructure operations and monitoring challenges.
A consultant will be engaged to focus exclusively on solutions to reduce the number of boil water advisories. This initiative will provide needed guidance to help communities identify what steps are required so that their boil water advisory could be lifted.
Government will utilize the provisions in the Lands Act that allow the creation of reserves to assist municipalities in acquiring Crown lands at market value in a phased approach for development.
Additional Initiatives
New accountability measures that will require municipalities to submit a summary of its taxes receivable balances to the Department of Municipal and Intergovernmental Affairs, along with a plan to adequately collect those taxes receivables
Development of a provincial municipal asset management framework that will provide further details on the current state of municipal infrastructure in the province
An advisory committee will be established to look at the potential for a new regional governance structure
Municipalities Newfoundland and Labrador has also requested an accommodations tax
Government will initiate consultations regarding the potential expansion of the authority for municipalities to allow for blending of business and realty taxes
Source: Province of Newfoundland and Labrador