Charlottetown property taxes hold steady, water rates going up

Charlottetown residents will not see their property tax rates go up this year, but given inflation they can expect to pay more in taxes.

Coun. Jason Coady, chair of the finance committee, presented the city's budget on Thursday.

It is projecting a 5.8 increase in property tax revenue. The tax rate will be steady, but tax assessments are projected to go up five per cent. The assessments are tied to inflation, which has been running over seven per cent on the Island, but they are capped by the provincial government.

Water and sewer rates will also be going up by 5.1 per centto account for inflation, which Coady saidwill come to about $30 for the average household.

The city alsogranted a request from the downtown business community to hold the line on parking rates, deferring once again an increase that was planned for October 2020.

While parking rates haven't changed, the citybenefited from more visitors than expected in the current fiscal year. Last March, revenues were estimated at $370,000 but the current forecast is for $619,500.

More firefighters

Coady said he was pleased the city was able to hold tax rates steady.

"Anytime you can provide a balanced budget without a tax increase, that's certainly a high," said Coady.

The city is projecting a surplus for the coming budget year, 2022-23, of just under $5,000.

Another highlight, he said, is new staff coming on board eight new positions are being created, including three firefighters

A new dispatcher position is being added to the police department. There will also be a mental health and safety coordinator for city staff, a GIS technician who will help out in a number of departments across the city's administration, a public works foreman, and an additional person in the communications department.

Big surplus

Last March the city was estimating a $5,000 surplus for the 2021-22 budget year.

The surplus is now forecast to be $4.4 million, which is being added to revenues for the coming budget year, which starts Friday.

Charlottetown CAO Peter Kelly said most of the savings are the result of vacant positions, an issue Charlottetown is not alone in facing.

"There are staff shortfalls not only here but across the country," said Kelly.

The city would rather leave positions vacant and wait to find qualified people to fill them, he said.

The police department showed one of the biggest savings from the estimates of last March, from $10.2 million to acurrent forecast of $8.7 million.

The city has not faced any serious operational difficulties due to the vacancies, said Kelly.