The province announced today that the government will work in partnership with the City of Charlottetown, the City of Summerside, and the Town of Stratford to employ a consulting firm to review the current funding agreements between these municipalities and the province.
The announcement was made today by Wes MacAleer, Minister of Community Services and Attorney General.
Minister MacAleer stated that the review is the result of an earlier understanding between the province and the City of Charlottetown to address issues related to the funding of municipal governments, within the Comprehensive Urban Services Agreements (CUSA). The Comprehensive Urban Services Agreement provides a formula whereby large municipalities receive funding from the province for the provision of police services and street maintenance. The Agreement was put in place when the municipalities were amalgamated in 1995.
From its inception, the City of Charlottetown has expressed concerns with the funding formula in the Comprehensive Urban Services Agreement. Until another arrangement is formulated, Minister MacAleer further stated that the Province has provided the City with an additional $1-million dollars annually for the next three years.
Minister MacAleer said that he is encouraged by the cooperation experienced within the municipal/provincial committee established to direct the review of this issue. He also noted that the committee will be releasing a request for proposals to conduct the review in the near future. The review will form the basis for future discussions to secure a long-term funding agreement between the province and the municipalities.