Summerside passes ‘getting things done’ budget
There's a new tax rate for non-resident homeowners, slight increase to water, sewer rate
SUMMERSIDE, P.E.I. – The City of Summerside is putting another $5.5 million towards the second phase of its East-West Housing Corridor project, among many other expenditures in its 2024-25 budget.
The document, representing how approximately $71 million in general and utility funding will be spent over the coming months, was presented on March 12 and passed unanimously on March 27.
Coun. Bruce MacDougall, chair of the finance committee, delivered the budget speech and referred to the document as a “getting things done” budget.
“Forward thinking and fiscally responsible is how this budget has been developed,” said MacDougall. “We recognize the ongoing impact of the rising cost of living. 2023 was another tough year for business owners and residents. We know that every service we provide affects residents in their day-to-day lives.
“We thank our residents who continue to be adaptable, engaged and patient as we address and respond to the sizable challenges that we are providing significant resources to address.”
Notables from this year's document include the holding of the line on property tax rates, though the water and sewer rate will go up by about 7.1 cents per day. User fees at Credit Union Place will also be going up by five per cent.
NEW TAX BRACKET
The city is also moving to create a new tax bracket specifically for nonresident homeowners. Details about what rates would be set for this group were not provided during the address, though MacDougall said after the meeting that the city will likely look at mirroring the province’s approach, which is set at double the rate of inprovince residents.
Though the city has decided not to change the property tax rate, like other years, MacDougall warned that unless something changes, such as a new municipal funding model from the province, the city may have no choice in the coming years but to increase taxes.
The East-West Housing Corridor funding represents the single largest capital investment in the budget and matches the same amount the city allocated last year for the first phase of what is essentially a major new road, expected to open more than 300 acres of land for development.
UPGRADES PLANNED
Other big-ticket highlights include $5 million for upgrades and maintenance to Summerside Electric, a total of $3.2 million for water and sewer upgrades, and a total of $1.6 million for roads and sidewalks. About $1.3 million has also been set aside to complete construction of the city’s new industrial building in the Business Commons on Greenwood Drive.
Smaller projects include $453,000 to add an active transportation lane along Pope Road, from Greenwood Drive to Central Street, $472,000 for upgrades to city hall and $497,000 in community support grants. In total, the city expects to spend $22 million on capital investments.
Mayor Dan Kutcher called the budget “measured, balanced and thoughtful.”
“There’s no one particular piece that jumps out off the page. It’s more of (continuing ) the path we’ve already started down.”