ST. JOHN'S, N.L. — Both St. John’s and Mount Pearl are part of the Federation of Canadian Municipalities’ (FCM) request to the federal government this week for emergency operating funding.
The FCM is proposing a $10-billion funding package that would be allocated through a funding formula similar to the federal and provincial gas tax funding.
While a spokesperson with the City of St. John’s told The Telegram that Mayor Danny Breen will have more to say on this at the next regular council meeting on Monday, Mount Pearl Mayor Dave Aker was quoted in a news release issued Wednesday describing the “harsh fiscal challenge” the COVID-19 pandemic is having on municipalities across Canada.
“From an unprecedented storm event in January, to managing through the reality of operating city services in a pandemic with no finite end in sight, we have to find ways to continue to deliver vital services to our residents and businesses,” Aker stated in the release.
Mount Pearl’s news release said municipalities, including Mount Pearl, are deferring interest on a range of items, such as property taxes and utility bills, and even after the deferral programs, “there remains a significant risk of property tax or commercial tax delinquency.”
In Mount Pearl, tax revenues account for 89 per cent of the city’s revenue.
“Our full financial analysis, including long-term projections on the impact of COVID-19, is still underway,” Aker stated.
“However, every month we have our facilities closed is hundreds of thousands of dollars in lost revenue.”
By law, a municipality cannot carry an operating deficit, and most use reserves to cover disruptions and unplanned expenses.