Could there be a fourth city in Newfoundland and Labrador?

Leaders in Paradise are investigating whether changing the municipality's designation from a town to a city will benefit operations in what is locally referred to as Atlantic Canada's fastest-growing community.

Mayor Dan Bobbett says chief administrative officer Rodney Cumby is looking into the question with the intention of bringing a recommendation back to council.

It's one of many things happening in Paradise, one of a cluster of large municipalities on the province's northeast Avalon Peninsula.

The population has swollen over the past 15 or so years, and nearly doubled between 2001 (9,598) and 2011 (17,695), according to Statistics Canada.

The town also has a bustling business sector with its industrial park expanding by 70 per cent in recent years.

Mayor Bobbett estimates the population has now surpassed 21,000, making it the fourth largest municipality in the province.

More than population

That would put it ahead of Corner Brook, a city of just over 20,000 residents on the island's west coast, and just behind its neighbouring City of Mount Pearl, which has a population of just over 24,000, according to the 2011 census.

The Town of Conception Bay South, meanwhile, is home to some 25,000 people.

But it's not just about population, says Bobbett.

The administrative benefits of having city status could be the driving force behind the movement.

Towns in Newfoundland and Labrador are governed under the Municipalities Act, while St. John's, Mount Pearl and Corner Brook have Acts of their own.

Bobbett says the provincial government is reviewing all three city acts, with the possibility of merging them into one document.

As a town looking ahead into the future, Bobbett says it's important to explore all options.

"Right away, we can see that there might be some benefit for governance and enforcing regulations from a municipal enforcement point-of-view," he says.

Approval for city status will have to be granted by the provincial government, but Bobbett says there's no rush to apply.

"We just want to look at it," he adds, emphasizing that the pros and cons will be heavily scrutinized before council makes any decisions.

A new municipal building is one of the many signs of progress and growth in the Town of Paradise, which is referred to locally as Atlantic Canada’s fastest-growing municipality. (Town of Paradise)

One of the questions will include whether it will mean an increase in taxes, and Bobbett says that won't happen.

"Not at all," he says.

Meanwhile, the provincial Department of Municipal Affairs said it's been 25 years since a town has become a city in the province.

A spokesperson told CBC News in a statement Monday that there is no specific criteria to determine if a town is eligible to become a city.

"However, if Paradise's interest is related to having increased legislative authority, it is noteworthy that the Department of Municipal and Intergovernmental Affairs is currently consulting with the three cities and four largest towns (including Paradise) to look at whether legislative changes should be considered that allow towns with populations above 11,000 to have similar authority as the three Cities."

Bobbett said the town will consult with residents before any decisions are made.