To get through the pandemic, Municipalities NL suggests towns think regionally

The president of Municipalities Newfoundland and Labrador says towns are on the brink of financial ruin through the COVID-19 pandemic,and new approaches need to be taken to help.

Sheila Fitzgerald said municipalities are facingnew challenges under thepandemic, including added costs forprotective equipment for staff coupled with a drop in revenue fromunused public facilities. Taxes are also an ongoing problem, with so many more people out of work, she said.

"COVID-19 has certainly changed the way that we do business, and had us really reflecting on whether or not our current taxation system really meets the needs of municipalities of all sizes in this province," Fitzgerald, who is also the mayor of Roddickton-Bide Arm, toldThe St. John's Morning Show onMonday.

Fitzgerald said residents who have been able to pay taxes have been doing so, but businesses have taken a huge hit.

"In terms of our commercial [sector], we are hearing grave concerns from them, saying that COVID-19 has hit [them] greatly," she said. "For many small businesses theyhave to close their doors. For them, their future is unknown."

Fitzgerald said the provincial government released municipal fundingearlier than normal to help municipalities access additional funds during the pandemic, but hasn't heard much in terms of support from the federal government. The federal government needs to step in, she said, because municipalities in all provinces are at the brink of financial ruin.

"We can't run a deficit. We can't be at the end of the year still owing money," she said."We also can't ask for loans to maintain operational costs."

Taking a regional approach to government

Fitzgerald said the COVID-19 pandemic has shown her the importance of working together, and sees collaboration as anapproachthat could work to help weather the storm.

"More now than ever, it's been a real lesson learned that we have to look at a regional approach," she said.

"While we've been doing some pieces of that all along, sharing expertise we know now that alone, many of these small towns won't make it through this pandemic."

The idea of government regionalization is not new in Newfoundland and Labrador, but Fitzgerald said a collaborative approach could be what municipalities need to help stay afloat. In communities where a town staff canbe as small as one person, she said, the help is always welcomed.

"If we could pull together as different regions different clumps of municipalities pulling together, together we will have more," she said.

"We have went, in terms of municipalities, as far as we can go. It's going to take a call on provincial government to say the time is now."

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