Labrador City budget delayed for a month

It will be another month before the Town of Labrador City adopts an operating budget for 2016, Mayor Karen Oldford confirmed Monday.

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Budgetdeliberationshavealwaysbeen trying times but this is different times.- Karen Oldford

The town's budget was expected to be releasedFriday, but Municipal Affairs Minister Eddie Joyce hasgranted the townan extension untilJan31.

"We were really getting down to the wire and recognizing that we were really rushing some of the processes and we needed a little bit of extra time," OldfordtoldCBC'sLabrador Morning Show.

She said thetown has been diligent trying to finalize the budget, but with the changing economy it was necessary to meet with officials from the Iron Ore Company of Canada (IOC),and it was evident that wouldn't be possibleuntil the new year.

Major Contributor

We need ensure our business is here for thelongtermbecause everything that they do affects us and vice versa.- Karen Oldford

Oldford added that IOC, which operates the iron ore mine,is the largest singleemployer in Newfoundland and Labradorand is a huge contributor to the town.

Since the company isoutside the town'sboundaries, it is notdirectlytaxed but the grant inlieu of taxes make uparound 35 per cent of the annual operatingbudget.

"I mean we're all following commodity prices and recognizing the drastic impact that it has on a business," saidOldford,adding they need to get a handle on IOC'sfuture plans.

"We need to ensure our business is here for thelongtermbecause everything that they do affects us and vice versa."

The town has a contract which compels the company to pay a grant each year,and Oldford said there was never any concernthat the money wouldn't come through.

She added that while regular meetings with IOC are common, usually every quarter, they weren't able to meet in December butdoesn't anticipate any problem meeting the Jan. 31 deadline.

Challengingtimes

We do have to bemindfulof every penny that we spend.- Karen Oldford

Oldford said these arechallengingtimes and the town will be dropping it's mill rate to offsetassessments that are up around 30 per cent.

The town tried to skip the assessment cycle but legislation would not allow for it.

"We recognize thattheassessmentswere done at a time based on a boom andcertainlythat's not the case here inLabrador westnow," she stated.

She added that changing the mill rate will affect people differently depending on their assessments.

"Budgetdeliberationshavealwaysbeen trying times ... but this is different times,"saidOldford, adding the town is really looking for sustainability in itsplanning.

"We do have to bemindfulof every penny that we spend."

Oldford is hopeful that the Bloom Lakemine re-opening will be a benefit for Labrador West.

She is cautiousbecause there'sno control overcommodity prices, butwill continue to work with the provincial government to improve policies and legislationthat will protect people working in communities like hers.

"It's time now to have a good hard look at what can be done."