Provincial reform proposal barely survives at Saint John council meeting

Saint John Mayor Don Darling broke a tie vote Thursday night, effectively giving the city and the province one more month to come to an agreement on municipal reform.

Darling had spoken earlier against a package of reforms offered by the province in a report released Wednesday entitled, Sustaining Saint John.

And a clear majority of city councillors looked ready to reject it as well.

But the last-minute tabling motion by Coun. Donna Reardon headed that vote off — at least for the time being.

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Reardon made the tabling motion in hopes provincial cabinet ministers, who were also in the room, would return to Fredericton with a better understanding of the city's dire financial situation.

"I'm hoping that they've heard that," said Reardon. "And maybe they will listen to that and say, 'OK, what can we do for Saint John?'" 

The report committed the province to a review of property tax policy, and to taking steps to force outlying communities to contribute toward maintenance costs for facilities such as Harbour Station.

It also promised a review of the model used to create regional service commissions. 

Although staff recommended council endorse the report, city manager John Collin said there was no guarantee the review of tax policy will bring new revenue to the city. This includes a greater share of the estimated $45 million in property tax collected by the province from local industry.

City faces a climbing deficit 

With rising costs and near zero growth for the past several years, Collin told councillors the municipality is facing a deficit of $12 million in 2021 — climbing to more than $14 million by 2022. 

He outlined a series of drastic measures that would then have to be taken, including cuts to city transit and protective services, increases in user fees, and the elimination of subsidies for the use of recreation facilities.

"There would most definitely need to be considered workforce adjustment and/or pay freezes," said Collin. "There would, without doubt, be more potholes and more ice on our roads."

Coun. Gary Sullivan and Coun. Greg Norton argued in favour of the report.

The two councillors said it brought the city new money in the form of a mandatory accommodation levy, the removal of property tax from city transit facilities. They said it also brought a new rule that would force outlying communities — including rural local service districts — to contribute toward capital and/or operating costs for regional facilities such as Saint John's Harbour Station and the Canada Games Aquatic Centre.

"There's nothing bad in this report," said Sullivan. "There is nothing in this report that hurts the city of Saint John."

Councillor can't endorse report 

Coun. David Hickey was among the majority ready to vote against the package, saying he was not prepared to make serious cuts to services.

"These cutbacks are consistently faced on our priority neighbourhoods," said Hickey. "As a councillor that represents three of five priority neighbourhoods in this city, I can't in good faith endorse this report."

Jeff Carr, New Brunswick's minister of local government, welcomed the 30-day extension.

Carr said the city faces "short-term pain." But he cautioned the province is not in a position to hand over more than the $2 million he says would result immediately from acceptance of the report. Going beyond that would only force government to cut its own services, Carr said.

He said the promised review of the property tax system cannot be rushed.

"Legislative change takes time," he said.

The minister added that whatever happens at the end of the 30-day extension, the province will continue to work alongside the city.

"We will not turn our back on Saint John," he said.