Mount Pearl budget 2014 increases taxes

The city of Mount Pearl will increase taxes for home and business owners in its 2014 municipal budget.

Mil rate hike for home, business owners, neccessary to cover costs, says mayor

Mount Pearl Mayor Randy Simms said the city had to increase taxes in order for pay for services. (CBC)

The city of Mount Pearl will increase taxes for home and business owners in its 2014 municipal budget. 

The $43.2-million budget, which was released at the meeting of the Mount Pearl city council on Tuesday, called for mil rates for homeowners to increase from 6.7 to 7.4, and for business owners, it will increase from 16.75 to 17.5.

Randy Simms, the mayor of Mount Pearl, said the rate increase was necessary to cover the rising cost of regional services.

While there is this increase, there is no drop in service.- Randy Simms, mayor of Mount Pearl 

"While there is this increase, there is no drop in service, no cut in service," said Simms. "And I think that's a very positive thing."

Simms said the cost of providing services to Mount Pearl residents, such as fire protection and water, have gone up by 24 per cent, which meant the city had to come up with an extra $2 million.

Add to that the loss of the city's $700,000 municipal operating grant, and Simms said the city had to look to taxpayers rather than reduce services.

Simms said the Mount Pearl mil rate is comparable to the mil rate of the neighbouring town of Paradise. 

However, Simms added that he expects the town of Paradise will also have to increase its mil rate in its next budget.

The town of Paradise also presented its 2014 budget on Tuesday night, which kept tax rates as they are for the next 12 months.

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