Summerside releases 2024-25 budget with theme of 'getting things done'

The City of Summerside's 2024-25 capital and operational budgets were released on Tuesday, including more than $22 million dollars in investments into the community and $35 million in expenses.

"I think this budget really is measured, balanced and thoughtful," said Summerside Mayor Dan Kutcher after the meeting. 

Coun. Bruce MacDougall, chair of the city's finance committee, introduced the budget, saying, "when spending aligns with priorities, things get done."

Some of the largest areas of spending relate to public infrastructure and roadways. These include:

• $5.5 million for the next phase of building Summerside's east-west traffic and housing corridor.
• $3.2 million on water and sewer infrastructure.
• $2.1 million on the Summerside Business Commons Eco Industrial Park.
• $531,000 for street resurfacing.
• $530,000 on new and replacement sidewalks.
• $354,000 for intersection improvements.
• $100,000 for downtown beautification and public art.
• $90,000 allocated toward the ditch infilling cost-share program.

The east-west connector road and housing corridor will be about two kilometres long once it's complete, and will open up a new area for housing in about a year's time. 

Summerside is the only municipality in P.E.I. that runs its own electrical utility, which generates about $30 million in revenue. That grid will see a $5 million investment to ensure safety, security and reliability of the energy supply.

"It has been anticipated that our electric utility will have approximately $3.5 million of infrastructure to be replaced and upgraded each year, for the next 10 years," MacDougall said.

The City of Summerside is also spending $453,000 on active transportation trails, along with contributions from other levels of government that will bring the total cost to just over $900,000.

In terms of municipal services, the city plans to spend $277,000 on new equipment for fire departments and police services.

There's $472,000 set aside to make repairs to Summerside City Hall.

Property taxes not increasing

MacDougall said there will be no property tax changes for residents or businesses in Summerside for 2024-25. But there is a new tax group being implemented for non-resident, non-commercial properties.

"It will increase our sources of revenue and potentially move some underused non-resident homes back into the market for residents that live here all the time," he said.

Summerside budget holds property taxes steady, but water and sewer rates on the rise

9 months ago

Duration 1:38

Summerside's water and sewer rates are going up in 2024-25, and Coun. Bruce MacDougall says it's necessary as the city needs to replace piping that's more than 100 years old. Meanwhile, municipal taxes are staying the same this year — but Mayor Dan Kutcher says that may change in the future as people expect more services from the city.

While the city hasn't raised it's municipal property tax rate in three decades, the mayor said that may have to happen eventually due to population growth. 

Average monthly municipal taxes per resident work out to $86.28, based on the average residential dwelling assessment of $139,912.

There will, however, be a water and sewer rate increase with average adjustment of 7.1 cents per day. The hike is to offset the costs to replace the city's piping, some of which is more than 100 years old. 

"We recognize the impact this may have on businesses and residents," MacDougall said. "But investments must be made in this core and necessary infrastructure."

The price of running a city

The city will see nearly $35 million spent on operational costs. To offset some of the expenditures, Summerside expects $4.1 million in transfers from utilities, for a net spend of $30.9 million.

Summerside also expects over $11.4 million in transfers from the provincial government, as well as revenue of more than $11 million from property taxes.

Because of the wind power it generates, the city expects $3.4 million in energy sales, as well as $2.58 million in recreation revenue, and $568,000 in miscellaneous revenue from things like fines and permit applications.

A large portion of the operational costs will go toward services in the community, including:

• $7.7 million for green space and recreation.
• $7.1 million for police and fire services.
• $4.1 million for public works and technical services.
• $350,000 for eco park building expenses.
• $340,000 for raceway expenses.

The city will also see a large chunk of money go toward paying staff and keeping things running smoothly, including $4 million for administration expenses including IT operations, city hall and the chief administrative officer; $1 million for the mayor and city council; and $5.1 million for debt servicing costs.

"I've been through a number of the budgets and I know that this one seemed to flow a bit easier because we didn't have as many decisions to make," MacDougall said. "Overall, this process was good and I was very pleased with council."

The public has about two weeks to provide feedback and ask questions on the budget, and then council will reconvene to make any changes and approve it.