Property tax maintained, water issues addressed in 2017 Happy Valley-Goose Bay budget

Residents of Happy Valley-Goose Bay won't see an increase to property tax, but vacant land owners and some businesses mainly those benefiting from Muskrat Falls will be charged at a higher rate.

The municipality is preparingfor three main infrastructure projects outlined in its 2017 budget, tabled Wednesday night.

The town is putting $1.96 million into improving its water quality; $977,000 into repairing and extending Kelland Dive, one of two main thoroughfares; and $1.1 million into engineering work for a proposed wellness centre.

At$19.6 million, budget 2017 is one of Happy Valley-Goose Bay's largest to date.

Business taxes

Mayor Jamie Snook told CBC's Labrador Morning several termshad passed since business taxes were adjusted in the community, which neighboursthe Muskrat Falls project.

"No doubt there's business and money being made outside of the municipality, but certainly they're using our town and the facilities," Snook said.

"[Council] spent a lot of time trying to make sure that there would be no increases that would affect local people here in the community."

He said the latest budget brings the tax rate for five different categories of businesses up to what he calls the "provincial average."

Vacant land tax

A new tax was introduced for owners of vacant residential land while the existing tax for vacant commercial land was heightened.

Once the new budget is implemented, it will cost $1,500 in tax to hold onto a residential lot and $3,750 up from $2,500 for a commercial piece of land.

"It's designed to encourage these properties to be sold," Snook said, adding he hopes the change will spur a better market for first-time home builders.

Property tax

Property taxes are holding steady with no increase to the town's mill rate or fees for water and sewer.

There is, however, a change to the maximum income included in the town's tax relief program for low-income property owners.

The 25 per cent discount will now extend to households with a combined income of $46,750 an increase from around $42,000.

Residents are eligible for larger exemptions depending on how much they make.

Snook saidcouncil upped the amount to help accommodate for a high cost of living in Happy Valley-Goose Bay.

Water woes

The town is putting a little less than $2 million into improving its water quality an ongoing issue the mayor said 80 per cent of Lower Valley residents raised as a concern during pre-budget consultations.

• Point proven: Study shows municipal water worse than DND water in HVGB

The money is going towards the creation of two new wells and upgrades to pumps at the Sandhill Reservoir Pump Station.

The town is also in talks with 5 Wing Goose Bay over gaining more access to the water at Spring Gulch.

"Preliminary discussions have happened with them and it seems like it's encouraging," the mayor said.

Kelland Drive and wellness centre

Improvements to Kelland Drive are estimated at around $1 million, which the town intends to fund with federal gas tax funds.

The plan is to repair the thoroughfare in a phased approach, starting with the stretch between Churchill Street and Hamilton River Road intersections.

The town is also putting $1.1 million into engineering plans for the proposed wellness centre.

• Happy Valley-Goose Bay rec facilities need replacement, says mayor

"We did the public consultations and learned what people wanted, we did the conceptual drawings of the wellness centre and now there needs to be detailed engineering so it can go out to tender and be built," Snook said.

"We're progressing on it as quickly as we can and it's been a lesson learned to us to learn how much due diligence has to go into that type of investment."

In the meantime, existing recreation facilities are being upgraded.

The arena is getting $1,244,000 for ice headers and $27,500 for general improvements; a skate park extension will be built for $22,000; $6,600 will go into a sportsplex walking path; and $10,700 will be pumped into the Bike Labrador Pump track.