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He who Pays the Piper Calls the Tune? It's County time.

Clarenville is on a slippery slope if it assumes the role of the George's Brook - Milton Fire Department - even if there is compensation for doing it.  The implications go well beyond fire protection to affecting the future of our town.  



It is my contention that some of the most available and best developable land in the greater metropolitan Clarenville area is located in Georges Book – Milton.  Smith Sound provides a “million dollar view” and thanks to its location in Georges Brook – Milton, you can get that view for a lot less than a million dollars and a lot less than you can in Clarenville.  
Georges Book – Milton is not, in law, part of Clarenville. Georges Book – Milton is a separate entity known as a Local Service District (LSD). In NL, LSDs are not independent as Towns are; rather they are “children” of the Provincial government.  They have advisory committee’s made up of five to seven residents whose decisions need to be approved by the Minister of Municipal Affairs. LSD’s have very limited powers under section 387 of the Municipalities Act, 1999, to charge a fee for the cost of service or supply provided in the Local Service District. In Georges Brook – Milton this fee is less than $500 annually.
Clarenville is a municipality and therefore has full rights to set and enforce rules in its jurisdiction as well as to charge taxes. In Clarenville tax rates are based on property values. Those people with more valuable properties (as determined by the provincial Municipal Assessment Agency) pay more taxes.  A “typical” homeowner in Clarenville with a property assessed at $200,000 will pay $1550 in property tax ($7.75 per $1000) plus $360 water and sewer tax for a total of $1910.  
That’s roughly 4 times the amount someone with an equivalent property pays just outside the Town’s boundaries in Georges Brook-Milton. 
When you compare service-for- service offered, the inequity gets even more glaring.  Residents of the LSD receive most all of the major services (Snow clearing/roads, Water, and Garbage collection) that Clarenville receives.  One of the most prominent of these services is fire protection.  As of late there’s a lack of local volunteers willing to serve on the LSD’s fire department so it currently has no capacity for self-coverage.  Georges Brook – Milton has not been left uncovered though - Clarenville’s Volunteer Fire department is ‘temporarily’ providing fire protection to the LSD. 
Clarenville’s Council has been wrangling with this problem for a while now, and it set a deadline for the end of February for Georges Brook – Milton to get its own coverage in place – unfortunately this has not happened and Clarenville Council has felt morally compelled to extend the coverage deadline further.  There’s also little incentive for the LSD to move quickly as they surely know that around here neighbours take care of neighbours and that the volunteers of Clarenville’s Fire Department will not stand by in an emergency. 
Council may be acting ethically and rightly in this situation, but we have to ask about the implications of this situation: Should the taxpayer of Clarenville pay for this coverage? Is it equitable for our taxpayers to carry this burden? And; what are the potential implications for Clarenville if it continues coverage on a “fee for service” basis where the LSD pays a fee to Clarenville for the coverage?
Imagine if you were a person moving to this area, or considering building.  Surely you would appreciate a scenic view, a lowest cost of home ownership and the services of a large centre. Clarenville has all of that but Georges Brook - Milton can offer almost the same at ¼ the tax cost.  Meanwhile the people left living in the political boundaries of the municipality bare the tax burden for the region. 
There’s an obvious inequity in the current municipal taxation setup and it’s a problem not limited to Clarenville – it’s a provincial problem.  Unfortunately, it is a political hot potato that few politicians want to discuss.  With over 100 LSD’s in our region and less than a dozen municipalities with taxation authority, this current situation is but yet another example of the need to deal with the problem for the sake of our towns.  It’s time to revisit municipal financing and consider developing a County type regional government with representation, service and taxation authority so that people fairly have a voice and fairly pay for the value of services they receive.  The Piper should be calling the tune.

 

Comments

  1. Imagine if you were a person moving to this area, or considering building. Surely you would appreciate a scenic view, a lowest cost of home ownership and the services of a large centre. Clarenville has all of that but Georges Brook - Milton can offer almost the same at ¼ the cost cost. Meanwhile the peoples destitute maintenance in the political boundaries of the municipality bare the heaviness disability for the region. essay writing jobs freelance

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  2. While taking something out of context is unwise, the only reference I wish to make is that as LSD’s, we are “children” of the Provincial Government. It is not with a critical lens I write, but one of opinion and confession.
    I too for many years did not see that LSD’s were missing and not availing of their deserving tax dollars. Yes, the highways plow does our roads, like many Towns in our great province and the optics of this appears swaying and distorting fair opinions. Since joining the George’s Brook –Milton LSD, the realization of “the correct way it actually is”, was obvious. The residents of George’s Brook- Milton pay no different than residents anywhere in the province in regards to gas tax, HST, personal income taxes, corporate taxes. What I missed for sometime was the detrimental nature of living in an LSD, as far as getting our fair share back for governance. Our closest municipality, Clarenville will ‘rightfully’ receive $289,843.00 this year from HST Rebate and Gas Tax Rebate {Federal Gas Tax Rebate excluded here as are Utilities Taxes} and $233,258.74 for their share of the Municipal Operating Grant. Each and every year the Town of Clarenville receives their rightful share. Within those dollars, are the fair representative portion of taxes paid by George’s Brook – Milton as an LSD. As an LSD, we get NO money back from our taxes paid to allow us better operations. If on May 23rd, we become a Town, municipalities will share with this province’s newest Town allowing us to get our rightful share to better operate our community for our people. A conservative $130,000.00 per year will rightfully be returned to George’s Brook –Milton each year. For the past decade, even at this conservative figure, we failed to receive as an LSD, and BENEFIT FROM, $1.3 Million. “Children” of the Provincial Government? The children have grown up to collect their rightful share!
    Craig Pardy
    Chair
    GBM LSD

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