Conception Harbour mayor steps down, as town works to collect hundreds of thousands in unpaid taxes

A Newfoundland town shaken by financial trouble has a new mayor, with Craig Williams stepping down in Conception Harbour and Deputy Mayor Lawrence Penney taking over as interim mayor.

No official announcement has been made by the town, but in a Facebook post late last week, Penney wrote, "As you are all probably aware, Mayor Williams has resigned from council." CBC News has left messages with Williams seeking comment.

Penney told CBC News that Williams's Sept. 17 departure was a "personal decision" and declined to give further details on the circumstances, but did say Williams's wife, Cleo, had also stepped down from council.

Earlier this month, CBC News reported the Avalon Peninsula town, with a population of 624 in the 2021 census, was owed hundreds of thousands of dollars in uncollected taxes and was cutting back services like garbage collection and street lighting.

The town asked the provincial Department of Municipal Affairs to step in and help sort out its financial problems, including appointing a comptroller. Residents who owe taxes have also been coming forward, said Penney.

"Working with the comptroller, he said it's going to take a while to get things up and running," he said. "We've had an uptick in people coming forward to pay their taxes and hope that continues."

Penney said the comptroller arrived in the town last week and is helping council go through its financial statements so they can start getting its municipal operating grant and its share of the provincial gas tax, among other programs.

He added the comptroller is also helping train a newly hired town clerk.

"My job now is to work closely with the comptroller that was put in place by the minister and we have a new clerk hired on and she's being trained by the comptroller to make sure everything is done correctly."

According to a Facebook post by Williams in August, the unpaid poll tax owed in 2021 was $251,393, and he said the town expects that number to have doubled in 2022. The town's poll tax — a fixed tax levied on every resident over 18 — is $425 a year, raised by council in December from $375.

In an earlier statement to CBC News, the Department of Municipal and Provincial Affairs said a review of town finances found "a significant gap in tax collection."

Williams also wrote that the town hadn't been able to submit its 2021 and 2022 financial statements, which is necessary to receive its operating grants, because of "ongoing issues before the courts."

Williams didn't say what the issue was, but a former town clerk, Bonnie Lynn Wade, is facing 31 charges of fraud, theft and breaching trust.

Court documents show the fraud charges stem from allegations Wade used a town credit card 10 times, spending a total of $3,600.

Byelection coming

The resignations of Craig and Cleo Williams leave the five-member council with two vacant seats. Penney said byelections will be held as soon as possible. Like many towns across Newfoundland and Labrador, residents elect candidates to council and then the newly elected councillors decide who will hold what position, such as mayor and deputy mayor.

Penney said he and the other two councillors will meet to work out the byelection, and to decide if he'll stay on as mayor until the next general election. 

"Somebody else might step forward, because I'm the interim and decisions [are] made on a vote in council who will be there."

Garbage finally collected

Due to its financial problems, the town's garbage was not being collected, but Penney said that issue has been resolved.

"We worked with the contractor and he did a garbage pickup last Tuesday," he said, a breakthrough he also credited with assistance from the comptroller.

A good Samaritan had also gone around town and picked up some garbage, he added, and residents also recently raised $8,000 for the town's recreation committee.

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