© TC MEDIA/Nancy MacPhee
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.