Montague holds line on tax rates

MONTAGUE - Eastern P.E.I.'s largest town approved a $1.4-million balanced budget here Monday night calling for no residential or commercial tax increases and focusing more revenue on efforts to profile the famed Canada Tree this summer.
The town has welcomed an estimated $25 million in building developments over the past 18 months and is focusing on acquiring a new provincial manor as well as a possible project by Canadian Tire.
Five years ago the town's operating budget was barely $1 million.
The town is also engaged in a bill-paying battle with the Waterfront Development Corporation and has allotted additional dollars for a possible council pay increase later this year.
"The town is in good shape and with our rate increase for sewer and water we expect to see the deficit balanced out in the next three or four years," finance chairman John McFarlane said during his delivery of the budget document at town hall.
The town was granted approval by the Island Regulatory and Appeals Commission last year to proceed with sewer and water increases.
Those increases, which have already been implemented, will help balance out an estimated $180,000 deficit in operations.
The general revenue budget is balanced and allots $20,000 for work towards installing the Canada Tree as a permanent fixture on the waterfront.
Coun. Janice MacBeth said the tree will be on view for three weeks this summer while efforts are ongoing to find the funding to build a structure that can protect the work of art donated to the town by the family of the late artist Tyler Aspin.
The town is also clawing back almost $8,000 from the annual $14,000 in funding provided to the Waterfront Development Corp. over an outstanding bill.
"We're paying the bill so a business engaged in a project is not stuck for the loss," said McFarlane.
"But we will deduct that amount from the WDC."
The budget also includes provisions for a pay increase to be approved in April of $500 per councillor and $750 for the mayor.
There hasn't been an increase since 2006 and current honorariums are $4,000 per councillor and $5,500 for mayor.