Larger Municipalities Will Retain $1.4 Mllion in Municipal Operating Grants

The largest municipalities in this province will retain $1.4 million in annual Municipal Operating Grants. The Honourable Jack Byrne, Minister of Municipal Affairs, today announced the cancellation of the planned final phase of reductions to Municipal Operating Grants for 14 cities and towns.

�When we formed the government three years ago, the province�s fiscal house was in a state of disrepair. At that time we had to make some difficult decisions, which included a phased reduction in municipal operating grants to larger municipalities,� said Minister Byrne. �Today�s announcement means that those municipalities will retain $1.4 million in their fiscal framework for next year.�

The announcement meant the cancellation of a final phase of planned reductions, originally announced in 2003, for 14 municipalities that were experiencing growth in their tax bases. Assessment data showed there was an increase in assessed property values in these municipalities which demonstrated potential for increase in taxation revenue, and less need for reliance on financial support from government to provide municipal services.

�While these municipalities continue to show levels of growth, government is cognizant of the cost of municipal services,� said Minister Byrne. �I would like to extend sincere thanks and appreciation to the cities and towns that have worked with us these past two years and who have done their part to help the province turn the corner on its fiscal challenges.�

Wayne Ruth, president of the Newfoundland and Labrador Federation of Municipalities, was pleased with the announcement. �This is a welcome announcement for our large municipalities,� said Mr. Ruth. �We are pleased that the minister recognizes the value of the services provided by our municipalities and we will continue to work in partnership with government for the betterment of the citizens of Newfoundland and Labrador.�

�Government recognizes that municipalities have a critical role in the provision of frontline services in this province,� said Minister Byrne. �We remain committed to providing major funding supports to all municipalities through our various capital works programs, Municipal Operating Grants, and our active pursuit of federal funding for infrastructure.�

View Ministerial Statement

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Media contact:
John Tompkins
Director of Communication
Department of Municipal Affairs
709-729-1983
jtompkins@gov.nl.ca

2006 11 27                                            12:05 p.m.