Summerside nixes utility rate increase, passes 2022 budget
SUMMERSIDE — Residents here will not see an increase in their water and sewer bills this year after all.
Summerside City Council voted unanimously on Thursday, March 31 to pass the city’s $60 million 2022/2023 budget and reverse an earlier decision to increase utility and recreation fees.
During the initial budget presentation on March 9, it was announced water and sewer rates would be going up by five per cent, while recreation facility fees would increase three per cent.
However, the city has since received an update on the transfer payments it will be receiving from the provincial government and the total turned out to be much higher than originally projected. A modest surplus of about $6,700 had been expected, but the new cash increased that substantially to $660,000.
Council has decided to shunt some of that money into helping defer the rate increases for this year. Any leftover funds will go into the capital reserve for future infrastructure projects.
All members of council expressed relief at being able to avoid the rate increases, at least for this year. Some also looked to the future and said they would like to see next year’s budget take a harder look at finding savings before any rate or tax increases are considered.
“Going forward, we really need to look internally. Because it’s not every year that we might get that unexpected influx of money after the fact,” said Coun. Cory Snow.
Mayor Basil Stewart added that the increased transfer from the province is reflective of Summerside’s striking growth over the past few years.
The city’s population increased by nearly eight per cent between 2016 and 2021, according to recently released census data by Statistics Canada. Last year the city also shattered a decade-old record for new building permit values, which were just under
$74 million.
“With the new census it was obvious that we had an increase in the population on the Island and in our city, and that certainly helped the equalization dollars for our city,” said Stewart.
“With continued growth and continued work by council, we’ll continue to get additional revenues without increasing rates.”
This budget is the last for the current council. Municipal elections are slated to take place in November.