Positive Step Towards New Fiscal Framework

Today’s announcement by the provincial government marks a positive step towards addressing the fiscal arrangement which currently exists between the City of St. John’s and the provincial government. We would like to congratulate Premier Davis, Minister Hutchings, and President Rogers of Municipalities Newfoundland and Labrador, for their commitment in bringing us to this phase of our new partnership.
 
“The City of St. John's is pleased with today's announcement and looks forward to working with the province to further address the financing of municipal infrastructure and operations,” said Mayor Dennis O’Keefe.
 
The City of St. John's first issued its position on a new fiscal framework with the province in 2011, including a full rebate on the HST, elimination of payroll tax, and also requested the province to pay for its fair share of property tax, permits, fees, water usage, etc.
 
“The provincial rebates on the Harmonized Sales Tax (HST) combined with the sharing of provincial revenue from gasoline tax, once fully implemented, will translate into additional revenues in the range of $6 to $7 million per year for the City of St. John's,” said Councillor Danny Breen, Chairperson for Finance and Administration. “Should HST remain stable in the upcoming budget, these adjustments will significantly assist the City in addressing capital needs, which are in excess of $1 billion.”
 
Although the provincial government did not reinstate the City's municipal operating grant, the changes announced today are an excellent first step in fairly distributing revenue to municipalities throughout Newfoundland and Labrador.
 
Overall, the City of St. John's is pleased with today’s announcement and looks forward to the next phase of developing the new Community Stability Partnership, with more progress to come in the near future.
 
Media Contact:
Kelly Maguire
Media Relations
City of St. John's
Phone: 709-576-8491
E-mail: kmaguire@stjohns.ca