The City of Charlottetown is going to spend an extra $1 million on paving and plans to expedite the tendering and permit process in an effort to boost the economy.
Coun. Terry Bernard, chairman of the city’s finance committee, delivered the 2020-21 operational budget on Thursday, a document that points to minor increases in parking and water and sewer rates but also one that hopes to help get the economy rolling once restrictions around the coronavirus pandemic start to ease.
While Bernard delivered the budget in council chambers, eight of the other councillors participated via a conference call. Coun. Bob Doiron was absent.
The city’s operational budget is $59.7 million while the water and sewer utility comes in at $14.3 million.
There are no tax increases.
The budget was passed unanimously, as was a resolution to amend the capital budget which was passed in February. The amendment will see the city pump an extra $1 million, money from the federal government’s gas tax fund, into street paving. That means the city will spend $3.5 million on streets this year.
Highlights
Some highlights from the City of Charlottetown’s 2020-21 operational budget:
- City will spend $3.5 million on street paving this year, up from the $2.5 million it originally had planned.
- Parking rates arae going up in the downtown to $2 per hour at the meters and to $1.75/hour, $12.25/day and $150/month in the parkades.
- Water and sewer rates are increasing by the Consumer Price Index at a rate of 1.2 per cent. That breaks down to about $7 per customer for the full year.
- Departmental operating budgets for the next year are as follows — $14.9 million for public works; $14.1 million for police and fire services; $3.9 million for parks and recreation; $1.2 million for transit; $660,000 for economic development; and, $500,000 for community sustainability initiatives.
Bernard’s address also included news that planning staff is working around the clock to expedite the permit and tendering process — a process that can take up to three months — so when restrictions around the pandemic ease, the city is ready to move in an instant when it comes to infrastructure.
Spending on water and sewer utility upgrades will also be expedited.
“Everything is closed and nobody is moving. A lot of confidence is being lost in people’s lives, and it’s time to get the economy geared up again,’’ Bernard told The Guardian in a telephone interview following the budget address.
“Right now, we have people working from home so why can’t we get all of those building applications done; get them ready so when this COVID-19 is over, we’re able to get going again. There won’t be a delay.’’
Bernard added that the city also wants to be aggressive in dealing with streets left in poor shape by the winter.
“This was a rough year with the freeze-thaw cycle.’’
The city will also be keeping in touch with the provincial and federal governments to ensure it plays a role in helping to re-ignite the economy.
Tax rates
Following are property tax rates in Charlottetown for the coming fiscal year, per $100 of assessed value:
- Non-commercial (mobile home parks), 42 cents
- Non-commercial (mobile home parks-out of province), $1.08
- Non-commercial (residential), 67 cents
- Property owned by a non-resident or non-resident corporation, $1.33
- Hotel/motel and buildings of four units or more, 91 cents
- Hotel/motel, and buildings of four units or more (out of province), $1.57
- Commercial, $2.36
- BIA commercial (on behalf of Downtown Charlottetown Inc.), 18 cents
The 2020-21 budget will see parking rates increase in the downtown. Effective Sept. 1, it will cost $2 for one hour of parking at the meters, up from $1.50. As for the three parkades, one hour is going from $1.25 to $1.75 while daily parking will jump from $8.75 to $12.25. The monthly rate will be $150.
Right now, it’s free to park anywhere in downtown Charlottetown because businesses are closed. The city said there is no way to predict what it will lose in revenue because it all depends on how long the health crisis lasts.
However, the city did say that the new rates would bring in an extra $150,000, if they were in place over the course of a full year.
Bernard said the rates are not being hiked to make up for the revenue it’s currently losing.
“Definitely not. This (decision) was made long before this pandemic ever hit.’’
Bernard said rates are being hiked to help pay for significant upgrades the three parkades will require over the next few years, especially the Queen Parkade.
As for how long parking will remain free in the downtown, the city and the Charlottetown Area Development Corporation are expected to review the situation at the end of the month.
Water and sewer customers will also see a rate hike, but it’s not a big one.
The utility rate will increase by the Consumer Price Index at a rate of 1.2 per cent, effective immediately, which will go to balancing the utility budget. That amounts to an increase of no more than $7 per customer, for the entire year, or fewer than two cents per day, based on the average customer water usage.
Last year, utility rates saw a 32-cent-a-day increase, but that was the first increase in about 10 years.
Bernard said the city is projecting a surplus of $2.95 million for the 2019-20 fiscal year and is forecasting a surplus of $24,885 for the coming year.
