Municipal Support Grant Program

The Municipal Support Grant Program provides Island municipalities with two grants:
- the services grant and
- the equalization grant.
What is a services grant?
The services grant supports municipalities that have taken on responsibility for street maintenance or policing services.
What is an equalization grant?
The equalization grant provides funds to municipalities to offer basic services. It is given to municipalities that are not able to collect the same amount of tax revenue as other municipalities because of low property assessment values or a low population. The grant provides municipalities of a relatively similar size with a similar level of services.
How are the grants calculated for each municipality?
The total grant for each municipality is calculated and approved annually based on the Province’s fiscal year (April 1 to March 31) and is paid out monthly.
For the equalization grant, the following data is part of the calculation for each municipality:
- the total municipal assessment from the previous year;
- the non-commercial tax rate figures from the previous year; and
- the population figures from the most recent census.
How do municipalities apply for the program?
Municipalities do not have to apply for the program. Every year, the Government of Prince Edward Island uses data about each municipality and the government’s budgetary state to calculate how much the municipality will receive.
Is there a deadline or a fee to apply?
There is no deadline or fee to apply for this program.
Additional Information
Municipal Affairs Division
Telephone: (902) 620-3558
Email: municipalaffairs@gov.pe.ca