STRATFORD - Residential taxes will see a one-cent increase in Stratford, to be phased in over the next two years.
Coun. Gail MacDonald, who announced the increase during the town's budget meeting, said there was debate over this increase among the town's councillors. But ultimately, it was deemed the best way to balance town revenue and expenses.
"This budget was not an easy one," she said.
The 2020/21 operational budget was announced and approved via a Facebook livestream - due to COVID-19 precautions - on March 30. MacDonald and Mayor Steve Ogden facilitated it from the Stratford Town Centre, while other councillors called in from their homes.
According to MacDonald, Stratford continues to be negatively impacted by a revenue sharing model made by the provincial government in 2008. Council is optimistic that this model will be updated, having recently made a proposal to the current government, she said.
"We remain committed to being fiscally responsible with your tax dollars while also balancing the requests and expectations of residents for services and programs."
But Stratford's needs continue to grow, and the town has been preventing a tax raise for years by absorbing necessary costs. Last year's budget saw significant cuts because of this, MacDonald said.
So, to balance this year's budget and in response to the town's growing needs, residential property taxes will increase from $0.44 per $100 of assessment to $0.445.
"This equates to an approximately $11 increase for the average assessed home in Stratford for the upcoming year."
For commercial properties, tax rates will increase from $0.99 per $100 of assessment to $1.16. This too will be phased in over the next two years, becoming $1.25 in the second year.
Watch the Stratford's 2020/21 operational budget meeting at the video below:
Coun. Gary Glow said he hasn't seen a budget like this one throughout his time on council - residential taxes haven't increased since 2003. While raising taxes was a tough decision, he notes that the town has been able to grow a lot these past few years.
"When you look at the final outcome, I think it's going to be money well spent," he said.
The tax increase is still comparibly low to other jurisdictions on P.E.I., Ogden said.
"We want to keep it that way."
Overall, the town's operational budget has a revenue line of about $7,051,600 and an expense line of about $7,051,500, resulting in a surplus of about $100. The new budget also includes a COVID-19 contingincy fund of about $38,000, to be used as needed, such as for affected residents of businesses.
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