Slight increase to mill rate, residential property tax in Corner Brook

The City of Corner Brook is projecting a slight rise in spending in 2019 while increasing the residential mill rate.

On Monday, council unanimously approved a budget that will see residential property taxes increase by 4.33 per cent. The city estimates it equals out to an average of $74 per year for single-family homes, $80 for two-unit homes and $492 for properties with between three and 10 units.

Mayor Jim Parsons said the change was necessary due to the fact that 91 per cent of residential properties experienced a lower evaluation from the Municipal Assessment Agency this year.

The decision was based upon an average assessed value decrease of 3.83 per cent and a mill rate increase of 0.75, up to 8.25 mils.

Parsons said he understands that property owners would like to see expenses go down, but said the city's expenses have increased.

Jennifer Grudic/CBC
Jennifer Grudic/CBC

"It's a modest increase, I think a very affordable one," he said. "We've had some new expenses like our waste collection and that accounts for about 38 per cent of the increase in budget as well as expense."

"We all know about [how] increases in electricity also affect that budget. So, the city is in the same boat as the homeowner."

In contrast to residential taxes, there will be no change in commercial property taxes or business taxes. The city is complying with the Downtown Business Association's request not to charge a 10 per cent levy on business taxes for the designated downtown improvement area in 2019.

There will also be no change to unit charges for wastewater levies.

Additional spending

Total spending in the 2019 budget is expected to be just over $35.7 million — an increase of $693,800 compared to last year's budget.

A large portion of that money, 38 per cent, is earmarked for costs associated with garbage collection and the implementation of the provincial waste management strategy.

Jennifer Grudic/CBC
Jennifer Grudic/CBC

The city will also be leasing two additional loaders and purchasing one new skid-steer loader to address what it calls shortfalls in both street and sidewalk clearing operations.

There is also a plan to improve customer service by assigning one of the city's foremen to call residents back when they register complaints. The total budget for snow clearing next year is just over $1.88 million, a slight decrease from 2018.

Building upon work already done on a tourism strategy for the Bay of Islands and Lower Humber Valley region, the city is also set on creating a new tourism officer position to focus on bolstering the area's tourism industry.

Recreation

The City has identified the new Jubilee Field clubhouse project as its number one priority for capital funding requests in 2019.

Parsons said despite the city committing close to $100,000 this year to the planning, designing and engineering of the new building, they were unable to move forward due to a lack of funding from other levels of government.

CBC
CBC

"We're asking that our provincial and federal counterparts consider [this project] first," he said.

"We have engaged an engineering firm to complete a plan so it'll be ready to actually build as soon as we get this funding."

Conceptual design work will also begin on the new regional aquatics facility this year based around the pool and gymnasium wing of Grenfell Campus.

The city is currently seeking proposals from qualified firms to develop the concept for the site and provide initial cost estimates.