PEI

Property taxes won't go up in Summerside, but utility bills will

The $63-million budget is $14 million more than last year and will be balanced for the 23rd year in a row, according to the city. The city will reduce its long-term debt by $2.5 million.

City of Summerside unveils its 2018-19 budget

Deputy Mayor Frank Costa said the city's expenses have increased by approximately 20 per cent over the past five years and that 'revenues have not grown at the same pace.' (Tom Steepe/CBC)

The City of Summerside has released its 2018-19 budget.

The $63-million budget is $14 million more than last year and will be balanced for the 23rd year in a row, according to the city.

The city says it will reduce its long-term debt by $2.5 million.

The big highlight from Monday's reveal, according to the city, is that property tax rates —  the city's primary revenue stream — will not be increased for 2018-19.

"Maintaining tax rates at their current levels while continuing to provide a high level of service in the face of escalating costs is not easy," says Frank Costa, the city's deputy mayor. 

Costa said the city's expenses have increased by approximately 20 per cent over the past five years and that "revenues have not grown at the same pace."

To help make up the gap, the city is receiving a larger chunk of funding from the province — from about $7 million in grants in 2017 to $9 million in 2018.

Electric, water and sewer rates going up

Though property tax rates are remaining the same, the rates for water, sewer and electricity will be taking a leap — in accordance with the city's goal of investment into infrastructure improvements.

For residential households, water rates will be going up 37 cents per month and sewer rates by 83 cents per month. The city said rates are up to "enable current and future enhancements to water and sewer infrustructure."

The city has committed $3.2 million for improvements to the sewer and water utility in the budget.

Electric rates will jump another 2.3 per cent on March 1 'to stay in line with Maritime Electric's rates,' according to the city. (Tom Steepe/CBC)

Electric rates — Summerside has its own electric utility — will jump another 2.3 per cent on March 1 "to stay in line with Maritime Electric's rates."

Along with improvements to the sewer and water utility, the city has also committed $3 million to improve the electric utility.

Other budget highlights include $159,000 in new equipment and infrastructure for fire and police services, $306,000 for new sidewalks as well as $435,000 in donations to community organizations in Summerside.

Honorariums for mayor and council will not increase over the 2017 rates.