The Guardian (Charlottetown)

Villard promises tax relief

Mayoral opponents argue money should go to other priorities in Charlottet­own

- BY DAVE STEWART Dave.stewart@theguardia­n.pe.ca Twitter.com/DveStewart

Charlottet­own mayoral candidate Cecil Villard is promising a five per cent reduction in the city’s operating tax rate over four years, if elected.

Villard released that part of his platform during the Charlottet­own Mayoral Debate Wednesday evening at the W.A. Murphy Student Centre at UPEI.

“(Taxes are) prohibitiv­e for people that want to come here,’’ Villard said. “Taxes are very high.’’

For years, Charlottet­own argued it was not being treated fairly by the province’s municipal grants formula, saying it lost more than $15 million in revenue since 2007. That all changed in 2017. A new tax credit system put an additional $1.4 million in extra revenue into the city’s coffers and helped wipe out the city’s halfmillio­n-dollar deficit.

Current Mayor Clifford Lee suggested in an interview with The Guardian earlier this year that residents and business be given a tax break. But none came when the city delivered its budget.

So, one of the questions asked of the mayoral candidates during the debate — Villard, Kim Devine, Philip Brown, Jamie Larkin and William McFadden — was whether they favoured a tax cut.

Devine opposes a tax break, explaining that the city has infrastruc­ture costs, such as aging undergroun­d water and sewer pipes, and the city needs money to protect and rebuild this infrastruc­ture.

“If there is any extra money it should go to paying down our capital debt,’’ Devine said.

Brown said he proposed a five per cent reduction in the operating tax rate during the last election but now he is being told at the door that people simply don’t want to see taxes hiked.

“Our net debt is $100 million. I say no to a reduction in the tax rate,’’ Brown said.

Larkin cut in, saying the priority in the city is affordable housing and any surplus should go to that.

Larkin also suggested reducing expenses across the whole budget line, putting surplus to affordable housing.

Villard said the city does, indeed, need a strategy to manage its debt.

“I’m not sure if we want to pass on this legacy,’’ Villard said. “Never spend more in capital than what you retire in debt.’’

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