Jonathan Galgay apologizes for mill rate mix-up, blames staff

St. John's is holding off on multiple changes outlined in its 2016 budget, including plans to axe the half mill reduction for property owners not connected to water or sewage services — something the city has since learned is against the law. 

"There's no way around it but to say it was a mistake," Coun. Jonathan Galgay told CBC Radio's St. John's Morning Show Tuesday.

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The initial budget said all citizens would be expected to pay the same mill rate, regardless of whether or not properties relied on city water and sewage.

Upon further investigation, however, council learned that the city "had to give a break" to property owners not connected to water or sewage. Many such residents live in the Goulds area.

Galgay apologized for the confusion and said the problem lies in the fact that "council relies heavily on the advice of staff."

Council, he said, was advised that it had to provide "a fair and equal taxation through the mill rate across the board." 

I rely heavily upon advice, and so does council, from senior staff.- Coun. Jonathan Galgay

"We had some serious discussions yesterday with staff in terms of being more diligent in terms of reviewing the various acts," Galgay said.

"I'm not an expert in terms of the law, but I rely heavily upon advice, and so does council, from senior staff."

And that's not the only budget decision council is reviewing.

New plan for water and sewage repairs

Back in December, the city said it would no longer cover the cost of water and sewage repairs on private properties. It estimates this will save the city $500,000 a year.

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But council decided at its regular meeting Monday that property owners in St. John's aren't on the hook to pay the hefty repair bills — at least not yet.

Galgay said the city isn't ready to implement that change. Instead, it will continue carrying out repairs for a $500 flat rate until it establishes a new program to take its place.

"We're looking at minimizing the costs of the $500 to residents of the city. It's going to maintain right now, but we're looking at other options that would even further benefit the people," Galgay said.

According to the 2016 budget, the city will also begin charging for previously free services, such as cleaning up sewer backups, thawing frozen pipes and video inspections.

Depending on the job, those fees could range from $50 to $500.