Updated: Fri Nov. 06 2009 18:59:10

ctvwinnipeg.ca

A dispute over tax dollars has developed between some residents in Stony Mountain and their local government, the RM of Rockwood.

A committee has been formed, pressuring the RM to create a local urban district, or LUD. It is an elected group of residents that oversees how the municipality spends a portion of the community's tax revenue. There are 68 LUDs in Manitoba.

Last year, the municipality received $850,000 in lieu of taxes for the prison in Rockwood. If the LUD forms, supporters want the prison to be included within its jurisdiction.

One of the supporters of the campaign, Troy Wasmuth, says an LUD would ensure Stony Mountain gains much-needed improvements, including repairs to roads, sidewalks as well as proper street lights.

The LUD committee has been working to establish itself for more than two years, but Wasmuth says they have faced opposition from municipal council.

"[The RM] of Rockwood would be in favour if in the proposed area there's 51 per cent and that's one of the things we're talking about now," says Jim Campbell, a councillor in the RM of Rockwood.

Campbell acknowledges that the prison is one of the most divisive issues.

The decision ultimately lies with the municipal board and the provincial government. A board hearing has been delayed while the LUD committee and councillors with the RM prepare their arguments.