Seven Kings County communities have signed on to a new proposal for amalgamation, which some say will offer a better deal for residents.
Montague town council voted unanimously Monday to ratify the agreement, which was prepared by mediator Frank Gillan.
Montague Mayor Richard Collins said the new agreement represented a significant improvement over a previous proposal submitted to the Island Regulatory Appeals Commission (IRAC). Montague council voted against the proposal in February.
In an April letter addressed to IRAC, the town described its inclusion in the amalgamation proposal as “a travesty and a betrayal.”
But on Tuesday, Collins said the new agreement allowed for a reduction in residential tax rates.
"They were offering us a 12-cent tax reduction. Through the mediation, we doubled that – plus – to 26," Collins said.
Collins said the mediator met almost all of the town’s 16 conditions.
“So, it was a view that we were satisfied for our taxpayers at the Town of Montague."
Related: P.E.I. Green leader questions IRAC’s independence on Three Rivers amalgamation
Related: Islanders gather at legislature to protest province’s amalgamation/annexation policies
Community leaders in Georgetown, Lower Montague, Cardigan, Brudenell, Valleyfield and Lorne Valley also signed off on the proposal. Georgetown council has yet to ratify the agreement.
The new municipality, which would be known as the Greater Three Rivers Area, would see the area’s annual combined gas tax allocation double from $347,961 to an estimated $731,350. The new area would also see its funding under the municipal equalization formula increase from $140,711 as of 2016-17 to $704,622 in 2018-19. Municipal staff would be paid “at least an equivalent compensation level” as before amalgamation and policing services for the area would remain largely unchanged.
Collins said the next step is a report written to IRAC by the mediator, as well as public hearings about the proposal, some of which will take place in the currently unincorporated areas.
Some residents of the unincorporated areas have protested the amalgamation proposal, claiming they have had no say in its development.
Collins would not comment on his knowledge of timelines for the consultations, referring The Guardian to Communities Land and Environment Minister Richard Brown.
"I understand the minister is pushing this rather quickly," Collins said.
