This week’s good news Charlottetown budget was remarkable – as much for its contents as for what was left out. There are no tax or rate increases and the budget is awash in black ink, projecting a record-setting surplus of $2.55 million.
Council is thanking a benign Mother Nature for sparing the municipality this winter, as the still-flush snow clearing budget is largely responsible for the surplus. That, and a new funding formula with the province helped balance the books.
Mayor Clifford Lee, his council and city hall staff deserve thanks from residents and businesses for their prudent fiscal management. It’s certainly not an easy feat to juggle huge demands on resources with available dollars. There hasn’t been a tax increase since amalgamation in 1995. Wise spending of taxpayers’ money sends a positive signal to both residents and businesses.
The city’s strong financial position was welcomed by the Greater Charlottetown Area Chamber of Commerce, although the business group gently chided the city for not reducing the commercial tax rate. The mayor thought out loud several months ago about a possible tax decrease, and with the city’s strong fiscal position, now is an opportune time to encourage reinvestment in the local economy with a cut.
Mayor and council were careful to downplay the surplus and resisted the temptation to connect it with municipal elections this November, although the budget provides a solid platform launch. Mayor Lee hasn’t declared his intentions but it would be a surprise if he and a majority of council don’t re-offer.
The budget completely ignored the elephant in the room – likely by design rather than an error of omission. The highly anticipated multi-purpose entertainment and sports centre didn’t receive one line of attention.
Mayor Lee coyly commented that he expects the topic to be raised during the election campaign. He knows full well that it will become the central election issue. A task force recommended in December the construction of a 5,000-seat, $80 million multi-use facility, but incredibly, there was no mention of it in the capital or operational budgets.
The task force report was accepted without comment by the mayor and council last year. And the city is still trying desperately to remain neutral on the topic. But before votes are cast in November, candidates will be called out to state their position on this historic project which will help define the city for a generation or more to come. Mayor Lee has consistently expressed conditional support as long as its reasonably affordable to build and operate. He needs major federal grants, strong provincial help and widespread businesses sponsorship to limit the city’s liability.
Much hope is placed on federal dollars for the 2023 Canada Winter Games, which have all but been awarded to P.E.I. It doesn’t leave a lot of time to confirm funding and commit to building.
The decision on a new complex could well be decided this fall by citizens at the ballot box through selection of candidates who support or oppose this much-needed civic and provincial facility.
