Posted on: November 19, 2019 | Return to News
November 19, 2019
No Tax Increase for Conception Bay South, Thanks to Spending Cuts and Aggressive Debt Management Strategy
The Town of Conception Bay South tonight tabled its balanced budget for 2020 in the amount of $37.8 million. In a dedicated and conscious effort to minimize the financial burden on taxpayers, Council announced that there would be no increase to residential and commercial mil rates, or to the water and sewer tax rate.
Council also announced that the Town will be implementing an aggressive debt management strategy. By limiting new borrowing and making strategic use of cash, the Town will see an immediate reduction in debt payments for 2020 of approximately $700,000, which will translate to annualized savings of up to $1 million. This initiative, along with Council’s reduction in spending for the second consecutive year, greatly assisted in being able to avoid tax increases.
“We had very clear goals for this budget. We wanted to find ways to keep expenditures in check to ensure no mil rate increase for residents and businesses. We also wanted to create a more sustainable and successful future for Conception Bay South by managing our debt.
“Our public consultations for this budget showed us that residents list roads and sidewalks as top priorities, and Budget 2020 delivers on that,” said Mayor Terry French.
For the third budget in a row, Council will be allocating $1 million to a streets and sidewalks program. This rehabilitation program will see the Town invest $550,000 in sidewalks, with a priority in school zone areas, and $450,000 in mill and fill projects. The Town will be allocating a further $2 million to a street upgrading and paving program through the Gas Tax Fund.
Council acknowledged that there were many challenges faced during budget deliberations. To achieve a budget that protected against tax increases for residents and businesses, Council made finding ways to absorb increasing external costs a priority.
“Sustainability and fiscal responsibility are forefront in Budget 2020. We are the second largest municipality in the province, and one of the fastest growing. Conception Bay South is a bright town with a bright future, and we are entering the new year with a lens focused on continuing to create a healthy, prosperous, and sustainable community,” said Mayor French.
Highlights of Budget 2020 include:
For further details, please visit the budget webpage.