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PEI

Population, taxable property targets proposed for amalgamation in new draft law

A draft of the Municipal Government Act is proposing a population target for towns and cities looking to amalgamate.

Public comments on the draft act accepted until Oct. 7

Kensington's mayor believes amalgamation is a necessity for the town, or it's 1,500 residents will face much higher taxes to cover services, including road and sidewalk maintenance. (Brian Higgins/CBC)

A draft of the new Municipal GovernmentAct is proposing a population target for towns and cities looking to amalgamate.

The province is suggesting 4,000 people be the minimum population sizefor a new town, and 15,000 for a new city.

Under the newproposed provincial targets, new towns would also have to have$200-million in taxable property, and anew city would require$750-million.

P.E.I.'s minister of Communities, Land and Environment, Robert Mitchell says these are moving targets. (CBC)

Minister for Communities, Landand Environment Robert Mitchell said these targets could change after upcoming consultations with councils, which begin Thursday, but he doesn't expect the draft will change drastically.

"Those are numbers that are used in other municipalities all across the country, but flexibility has to be key and we've said all along that we'll be flexible on those targets," said Mitchell.

But he added "The more people you bring to the game, the less dollars will be for the residents."

Kensington mayor says amalgamation fairer option

Kensington'smayor Rowan Caseley said he actuallythought the province's target would be higher.

Kensington currently has a population of about 1,500. Caseleybelieves amalgamation is necessaryfor his town, and he thinks 4,000 is a reasonable target for growth.

Kensington's mayor, Rowan Caseley, actually expected the population target for newly amalgamated towns to be higher than 4,000. (Laura Chapin/CBC )

"There's a lot of minimum services that residents of a town expect their municipal governments to provide, and if you're going to provide these services there has to be enough of a level of revenue and support to keep the tax rate at an acceptable level."

Caseley said Kensingtonhas not floated the idea of amalgamation or annexation for years, even though the town servesbetween9,000 and 10,000 people. He said the lasteffort at amalgamation wasn't popular.

"And I understand from the people who are living out in the rural communities they don't want to become part of a town and pay extra taxes, but then again on the other side, the residents of the town shouldn't have to pay extra tax to provide a lot of the services."

Caseley said if Kensington is going to continue maintaining sidewalks and streets, andsnowplowingwith its existing populationbase, the municipaltax rate willhave to go up substantially, because costs keep rising.

Hethinks amalgamation is a fairer option, spreading the costs over more of the people using the services.

Targets not set in stone, according to minister

Mitchell said a draft of the presentations being made to councilswill be posted online before Thursday, sopeople can review the information andsubmit comments on that as well as the draft legislation.

The legislation isexpected to be table in the fall, but the minister believes, if it passes, it could likely take untilthe end of 2017 before it's proclaimed, afterregulations and policies are written.