The City of Summerside presented its budget Monday night, which included a $700,000 pay down of the city's debt.

Property taxes will remain the same in the P.E.I. city, but water and sewer rates are going up two per cent.

This is Mayor Bill Martin's first budget, and he wants to set a tone of living within the city's means.

"I think it's important in any budget," said Martin.

"We're told our debt is manageable, even our internal people tell us our debt is manageable, but if we continue to add to it we may reach a point where that's not the case."

The increase in utility rates will help pay for the large capital improvements on the books for 2015.

Three point five million dollars is allocated for those.

Other highlights include $380,000 in grants for various community organizations and $200,000 for two new fire trucks.

The city is also dedicating more than half a million dollars to economic development.

Part of that is developing a new eco-park that will cater to environmentally-friendly businesses looking to set up shop.

Finance chair Frank Costa said the plan is still in the beginning stages right now but the hope is that it will attract long-term tenants.