P.E.I. municipalities hoping for new funding arrangement with province

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Summerside Deputy Mayor Bruce MacDougall

For this year, grants for equalization, police, streets being increased by one per cent

Municipalities across the Island are hoping to get more money from the provincial government.

Bruce MacDougall, president of the Federation of P.E.I. Municipalities (FPEIM), said this week the mutual objective is to agree on a new revenue framework this year that would take effect in 2017.

For this year, grants for equalization, police and streets are being increased by one per cent.

"Municipal policing costs have been growing significantly for some time, and the provincial grant has been losing its value,'' MacDougall said. "This is one of the reasons municipalities need a new revenue framework.''

The grant system put in place by the province in 2008 for streets and police is especially challenging for growing municipalities. Unlike the previous tax credit system, the grants don't increase based on assessment to provide for the increased costs of servicing new development.

Organizations: Federation of P.E.I. Municipalities, FPEIM

Geographic location: Iceland

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Recent comments

  • dissolve all municipalities
    March 06, 2016 - 14:00

    Just get rid of every municipality in PEI. Take the PEI provincial government and make it a municipal government and put PEI under a larger province. There - solved everything.

  • Summerside resident
    March 05, 2016 - 19:33

    Bruce , just tell us the truth about all the mismanagement over the last ten yrs with our former Mayor and CAO, and lawyers I might add. You have proven you cannot manage tax dollars in a prudent way. Don't expect the Province to give any hand outs above what anyone else gets. Summerside is well know across Canada for the Concert Fiasco costing taxpayers over 3 million, just as one example.