Stratford residents will see trio of 2-cent tax rate increases to cover rising costs

Municipal councillors in Stratford, P.E.I., have approved a tax increase as part of the town's budget for the 2024-25 fiscal year.  

The town says operations have become increasingly hard to fund without hurting services or programs, or cutting the budget of valuable infrastructure projects.

So the municipal portion of residential property taxes will increase by two cents this year to 47 cents per $100 of assessed value — and another two cents in each of the following two years.

Rates are also going up by eight cents for apartment units for each of the next three years, taking the rate to 68 cents per $100 of assessed value this year, and there will be a one-time, 10-cent increase in the commercial tax rate to $1.35 per $100 of assessed value.

"I was really reluctant to look at raising taxes, but I think in this case it is really necessary and we really need this money," said Mayor Steve Ogden.

"Residents will get something for this tax increase — we'll get improved programs and services and facilities that residents want and need and deserve."

Fees for licences, permits and facility rents are also going up. 

"We recognize that residents are experiencing increases elsewhere in today's economic climate, and we too have inflationary pressures on our budgets," Coun. Ron Dowling, chair of the town's finance and technology committee, said at Thursday's council meeting. 

He noted that municipalities have been without a revenue sharing agreement with the government of P.E.I. since March 2022, though negotiations on a new one continue. 

"The national average for share of tax revenue between municipalities and the federal and provincial government is 9.2 cents per tax dollar," says a budget document posted on the town's site. "In P.E.I., municipalities only receive 2.2 cents per tax dollar."

The town says its municipal tax rate increases for 2024-25 will let it add another RCMP officer, cover higher dues for the Cross Roads Rural Fire Company, continue its residential tree-planting program and expand the transit system, among other things.  

Ogden pointed out that police and fire costs have gone up significantly in recent years, adding that a new fire truck costs nearly $1 million these days and much of the fire company's equipment has to be replaced every 10 years because it will no longer meet industry standards.

"For the policing costs, with a new [RCMP] collective agreement, that cost has escalated quite substantially, as well as the retroactive amount that we had to pay," Ogden told the meeting. "And adding another police officer, because of our growing population, there's a need for that so we can provide the best policing services possible."

The town is also spending money to complete the pondside watershed restoration, with a focus on Kelly's Pond; increase the Stratford Youth Centre's operational budget; and build a new website for the town that's home to more than 11,000 people.