Fredericton shooting, spring flood could cost city up to $2.2M
Council will have some hard choices to make after 'catastrophic year,' warns city finance chair
Calamities like the Fredericton shootings that left four people dead, including two police officers, could cost the city up to $2.2 million in its 2019 budget.
"The reality is, there is no buffer to absorb these significant unexpected costs right now, without additional revenue, without impacting service levels," Tina Tapley, the city treasurer and director of finance, said at a pre-budget council-in-committee meeting on Monday.
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Councillors were told the city was responsible for paying for the regimental funerals for Const. Robb Costello and Const. Sara Burns, who died, along with Bobbie Lee Wright and Donnie Robichaud, in the shootings outside a north-side apartment building in August.
The city is also paying for the investigation and for police officers who had to fill in for officers who needed time off after the shootings.
Matthew Vincent Raymond, who is charged with four counts of first-degree murder in the August shooting, is expected to appear in provincial court on Oct. 22.
The city still doesn't know exactly how much those expenses will be, which worries some councillors.
"It's been an expensive and catastrophic year across a variety of files," said Coun. Greg Ericson, chair of the city's finance committee.
"Council has some challenging decisions ahead of it in terms of how we're going to cover those costs and still provide services and the quality and value that the citizens get from our services."
At the meeting, Fredericton Mayor Mike O'Brien said Ottawa will help with some of the costs, but he didn't say how much it would contribute.
The city's bottom line was also impacted by tariffs from the United States, unprecedented spring flooding, halting the city's plans for Officers' Square, and the continued effects of the provincial property tax assessment freeze.
A better contingency fund
Council agreed there needs to be a better contingency fund to cover unforeseen expenses.
Right now, Ericson said, the city doesn't have a strong plan for dealing with unexpected costs.
"Huge one-time fluctuations, whether they're costs or whatever, can impact all kinds of operations that the city performs," he said. "We have very limited revenue streams and limited capacities to borrow under provincial legislation.
"We don't have a credit card with an unlimited amount on it, and we can't just turn to other levels of government with our hands out every time we need it."
In 2018, the city was able to handle some budget challenges such as the property assessment freeze because of a substantial surplus carried over from a previous budget.
"This year we don't have a surplus that helps in the same way, so we've got some difficult conversations around the council table," said Ericson.