Published Mar 31, 2025 • 2 minute readCharlottetown Coun. Terry Bernard, interim finance committee chair, says Charlottetown’s new operating budget includes a 2.2 per cent increase in water utility rates, but no change to property tax. Council passed the budget on March 31. Logan MacLean Logan MacLeanCharlottetown residents should expect a small increase in water prices this year, but property taxes are staying the same.City council passed its operating budgets for the city and the water utility at a special meeting on March 31.The city’s operating expenses are set to be $94 million and the utility will be $16.3 million, making a total expenditure of over $110 million. The full financial plan also includes the capital budget, passed on Feb. 25, which totalled $70 million, of which $9.6 is partner funding.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentThe operating budgets cover day to day expenses such as salaries, fuel and uniforms, while the capital pays for infrastructure and other projects.With no increase in taxes, there will be a 2.2 per cent addition to water utility prices. This number is attached by bylaw to the consumer price index, so it matches inflation, capping out at three per cent.While taxes are staying the same, councillors and city staff say Charlottetown’s revenue sharing arrangement with the province is not sustainable. The province collects taxes and gives the city back its share, but Island municipalities have been calling for adjustments to the model.Coun. Terry Bernard, interim finance committee chair, spoke about the revenue challenges in his introduction to the budget.“We stand committed to working with our municipal and provincial partners to develop a more predictable, sustainable fiscal framework that supports both municipal and provincial priorities in the years to come.”Mayor Philip Brown says the province gave the city a one-time increase of $1.8 million in revenue sharing this year with a further $2.2 million coming next year. But keeping up with population growth will need a long term solution, Brown said in a Guardian interview after the vote.Article content Charlottetown council passed its 2025-2026 operating budgets for the city and its water utility on March 31. Logan MacLean Logan MacLeanSIMILAR BUDGETOverall, the new operating budgets are similar to last year.One significant increase is in planning department spending, going from $2.1 million budgeted last year to $3.2 million. Much of the extra money is from partner funding via the federal housing accelerator fund. Charlottetown will be on the hook for those salaries in the coming years, though, because the fund was a one-time injection of cash, Brown said.But at the same time, those new planning positions will help raise funds for the city by increasing development, he said.“We have one form of taxation, property tax. But where you can increase your property use, that increases the base of property taxes to allow the expenditure or payment of future services in any department.”POLICEDuring budget planning, city police requested new officers. These were not included in the March 31 budget but should be part of a later stage involving grant money, Brown said.While last year’s operating budget for police salary and benefits was $14.2 million, only $11.5 million was spent. The police have struggled to hire new officers, despite including money in the budget for them, Brown said.There’s also competition with larger agencies like the RCMP, he said.“Trying to attract new officers, we can’t compete with the big provinces.”In an interview after the vote, Bernard said several officers have also left the city, including going to the RCMP.The new budget includes a similar allotment for police salaries as last year.Article content
Taxes stay the same in Charlottetowns $110 million operating budget, while water fees increase
