CHARLOTTETOWN, P.E.I. - Snow was responsible for burying the City of Charlottetown into a deficit situation two years ago and it’s largely responsible for a flurry of extra money announced on Wednesday.
Thanks in large part to a timid winter, the city capped off 2017 with a projected consolidated surplus of $2.55 million.
See below for a stream of Wednesday's budget address
Coun. Melissa Hilton, chairwoman of the city’s finance committee, brought down the annual operating budget on Wednesday – the city corporation posted a balanced budget of $66.8 million while the Water and Sewer Utility budget also balances with expenditures at $15.4 million.
The city has saved about $2 million in snow clearing and has budgeted $6.2 million in this coming fiscal year. Some of that money is being kept aside for union negotiations. Also, keep in mind that it covers two winters, this one and next one because the city is now in a 15-month budget cycle to match up with the province’s fiscal year.
“Most definitely the calm winter (helped) and here’s hoping it stays calm,’’ Hilton said. “We didn’t have the overtime for our staff (and) we didn’t have to hire any additional contractors.’’
The surplus reflects $2.3 million from the city’s operating budget and $250,000 form the Water and Sewer Utility.
The best news is that the city is holding the line on residential and commercial tax rates and there is also no increase on water and sewer rates. There hasn’t been a tax rate increase since amalgamation in 1995 and only one tax rate decrease, in 2005.
“Well, the surplus from last year has nothing to do with an election year this year,’’ Hilton said when asked by the media if they were trying to stay on the good side of voters. “What actually happened last year was the fact that our city staff from one end of the city corporation to the other end of the city corporation were all very diligent to make sure their line items were not overspent and it came in at a $2.55 million surplus.’’
The current budget year goes Jan. 1, 2018 to March 31, 2019. After that, the budgets will line up, April to April.
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Need to know: tax rates
- Municipal tax rate of 67 cents per $100 of assessment be levied against all non-commercial property
- The non-commercial component of property which is owned by a non-resident person or non-resident corporation shall be $1.33 per $100 of assessment
- The non-commercial component of hotels and motels shall be 91 cents per $100 of assessment where owner is a resident person or resident corporation; $1.57 per $100 of assessment where owner is a non-resident person or non-resident corporation
- Non-commercial component of apartment buildings containing four or more units shall be 91 cents per $100 of assessment where owner is a resident person or resident corporation; or $1.57 per $100 of assessment where owner is a non-resident or a non-resident corporation
- Non-commercial component of properties located in the Parkwood Estates and Riverview Estates mobile home parks shall be 42 cents per $100 of assessment where the owner iss a resident person or resident corporation; or $1.08 per $100 of assessment where the owner is a non-resident person or a non-resident corporation
- A municipal tax rate of $2.36 per $100 of assessment be levied against all commercial property
- City requests province collect an additional 18 cents per $100 of assessment on all commercial properties within the Business Improvement Area. Money used by Downtown Charlottetown Inc. to market and enhance the downtown core.
Some of the highlights from the budget include $3 million for upgrading the major storm water management systems, $1 million for parks and recreation, $3 million for street resurfacing, $1.7 million to acquire the properties at Prince and Water streets and Queen and Pond streets, $1.4 million for street lighting, $2.7 million for municipal buildings and $1.3 million for transit services.
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When it comes to revenue, the City of Charlottetown expects to bring in $1.162 million from parking meters and $868,750 from parking garages. That’s more than $360,000 more than expected.
Peter Kelly, chief administrative officer, said that’s because there is more activity in the downtown area, pointing to 2017 as a great tourism year.
It was also revealed that building permits are up 50 per cent.
There was no mention in the budget about the much talked about multi-use arena. It was the same message on Wednesday, that talks with stakeholders continue.
Mayor Clifford Lee gave props to the provincial government. Thanks to the new Municipal Government Act, the city is no longer prisoner to the unpredictable grant system when it comes to revenue coming in from the province.
“The City of Charlottetown has received almost $4.8 million in additional revenue from the province of P.E.I. for this fiscal year and that figure is only going to change as we move forward,’’ Lee said. “Some years, our grants were reduced by five per cent. There was no way for municipalities to be able to plan its revenue source or what you could do from one year to the next.’’
The other major change, Lee said, is the HST rebate that municipalities are now able to claim from the province.
“The utility is going to gain roughly $2.8 million in revenue this year, which has a tremendous impact on water and sewer rates and the city government side is going to receive close to $2 million in additional funding from the province.’’
