Charlottetown residents can breathe a sigh of relief there will be no tax increases again this year, after the municipal budget passed on Tuesday.

Property taxes and water and sewer rates will remain steady, despite the fact the HST will be coming into effect in next week and will cost the city $1.4 million.

No deal has been reached with the province to manage that cost, but the province will offset the HST by giving the city $1 million in infrastructure money. The more than $400,000 left will be absorbed by each city department.  

The city has managed to find money for several major projects this year, including $2 million for a new fire hall. The property for that project has not yet been secured.

Another $3.8 million will be spent on the second phase of the Spring Park water and sewer separation project.

The city will also be beginning to lay the foundation for the new well system planned in Miltonvale Park, at a cost of $2 million dollars. The project includes creating an access road, finishing the piping and engineering the connection the system. That project isn't expected to be finished until 2017.

The funding for the project was a point of contention for Coun. Mitchell Tweel. He was one of two councillors who voted against the budget.

Tweel said he feels the city should be spending more money to further the project along, because of concerns the city's water supply is rapidly diminishing. Council said there wasn't enough money to move the project further.