Municipalities across province warned of risky fiscal status

A number of towns in Nova Scotia continue to have fiscal challenges, according to the latest provincial assessment.

The financial condition index measures the municipalities in 13 different categories, includinguncollected taxes, budget deficits, reliance on government transfers or a single business and the amount of savingsthat a municipality has on hand.

Lockeport'smayor, George Harding, insists the town's financial situation has improved over the past threeyears, sayingClearwater Seafoods, the main employer, has just invested $1 million.

"It appears that Clearwater is not going to go away any time soon,"said Harding.

He added that using even a minimum amount of savings, or reserves, for capital projectsin small communities can trigger warnings from the financial index.

"I think it [the index] serves larger units better, but it's stilla useful tool for our council to review."

Mulgrave received four red flags and two yellow ones. The town tried to amalgamate with the Municipality of the District ofGuysborough, but pulled out of the process when Guysborough officials said they would oppose the move.

Concerns about small communities such as Mulgrave andLockeport have been raised before, but the latest assessment also shows threered flags and threeyellow ones for Yarmouth, one of the province's larger towns, with 6,500people.

Yarmouth mayor not worried

Red-flag concerns forYarmouth cover budget deficits, the amountofreserves and a decrease in the town's tax base.YarmouthMayorPam Mood saidtown officials take note of the information provided, but she's not worried.

"It doesn't matter how much money you have in reserve ifyou aren't spending any of it on your infrastructure," said Mood. "If you do what we're doing and fix it as you go, thenyou're not digging the hole any deeper."

Most of the rural municipalities had fewer fiscal concerns, with the exception of Guysborough and Digby, which both had threered flags each.

The only municipality withno red or yellow flags is the Municipalityof the County of Kings.