Why this tiny Labrador town is asking its neighbours to send cash

A small, southern Labrador town is looking beyond its own municipal boundaries in an unconventional attempt to find new funds for local services.

Charlottetown town council is asking people in the neighbouring local service district of Pinsent's Arm to send in $75 per household to help pay for things people in both communities use.

"A lot of the services that they use are in this community, so we just thought if they could contribute that would be fantastic," Charlottetown town manager and clerk Stewart Macnab told CBC Radio's Labrador Morning.

On Monday, town council sent letters to people in Pinsent's Arm, making the case for what's described as a "contribution."

Council has no authority to compel people who live outside the town to pay.

Services and facilities outlined in the letter include a drinking water station, recreation facilities and the town dump.

Macnab acknowledged that Charlottetown received outside funding from other governments and sponsors to install some of that infrastructure, but said operational costs are covered by the town's tax base, which is about 120 households.

The town manager said there are 21 households in neighbouring Pinsent's Arm. If each contributed $75 a year, Charlottetown would have $1,575 more in its annual budget.

"The cost of running these facilities is fairly high, and residents of both communities have utilized these services," Macnab said.

'I don't think anybody likes it'

The letter from Charlottetown generated a social media frenzy, but Harrison Campbell, chair of the Pinsent's Arm local service district, could not be reached because he's aboard a fishing vessel, his wife said.

"He don't know nothing about the letter yet," Sandra Campbell laughed.

She said reaction to the proposal has been lukewarm in Pinsent's Arm. Campbell pointed out that people in the local service district support their neighbours in other ways, such as donating to fundraisers.

"I don't think anybody likes it," she said of the letter.

"This community helps out Charlottetown a lot."

Frank Martin, who also sits on the local service district committee, said he isn't opposed to paying for services rendered, but doesn't think senior citizens should have to pay the same rate as everyone else.

"First of all, we don't even use the rec centre or none of the playground facilities up there," he said.  

"I could deal with water and the garbage and stuff like that."

Martin said he hopes people in both communities will come together and work out a fee schedule that makes sense to everyone.

Charlottetown's Macnab said he is sympathetic to the concerns.

"Living in Labrador is not cheap and people have to watch their personal dollars," he said. "I understand that."

Shrinking populations

But at the same time, the town council must also watch its dollars. Across Newfoundland and Labrador, towns like Charlottetown — which is home to 290 people — are facing aging populations and outmigration. That means a smaller tax base, but not necessarily a reduction in costs.

"This is not a cash grab," Macnab said.

"It's just assisting with services provided."

Lisa Dempster, the MHA for Cartwright-L'anse au Clair and newly appointed municipal affairs minister, said the challenges faced by shrinking communities are on the province's radar.

"Some of the conversations have already started," she said, "conversations of, how do we manage some of these things going forward?"

For now, Charlottetown is left hoping people in Pinsent's Arm feel contributing to town council is a worthwhile investment.

Stephen Campbell, who lives in Pinsent's Arm, said he already contributes plenty to the Charlottetown economy, such as buying gas and groceries there.

But he's also got friends there, and he does use Charlottetown's water station and dump.

"I'm not going to start a war over it," he said. "If it comes down to it, what's $75? That's nothing."

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