Saint John councillors reluctantly approve municipal reform package

Saint John councillors have reluctantly endorsed a proposed list of provincial and municipal reforms aimed at helping the city through a looming financial crisis.

It is hoped the reforms will head off major cuts to city services, following several years of nearly flat revenue growth and steadily rising costs. 

The deal commits the province to review its property tax policy and to remove the provincial tax on public transit facilities that belong to municipalities.

It will also require outlying communities to share capital costs for regional facilities such as Saint John's Harbour Station and the Canada Games Aquatic Centre. Currently, those municipalities help pay for operating costs but leave the purchase and maintenance costs to the city.

We didn't get a heck of a lot more, folks, you don't have to read that to know that.- Coun. David Merrithew

The reforms could include changes to the binding arbitration process used to settle disputes with police and fire unions. Right now, those unions are not legally allowed to go on strike. 

The reforms also commit the province to review the regional service commission model to better share costs for some services across municipal borders.

Last month, an earlier version of the document was tabled by city councillors, after it became clear it did not have enough support to pass. 

At that time, several councillors were unhappy the province only committed to review the property tax system, rather than go ahead with changes — particularly to the way revenue from heavy industry is allocated.

Council can't win a better deal

The new report is largely unchanged from the July version. But some councillors said they are now resigned to the idea they cannot win a better reform package.

"We didn't get a heck of a lot more, folks, you don't have to read that to know that." said Coun. David Merrithew, who heads the city's finance committee. 

While the new version promises no more than a review of tax policy, the language on binding arbitration is much stronger. It says the province will bring forward new legislation based on a city council motion after the municipality has consulted on the issue with its local unions.

The document also commits to legislation that will allow the city to keep surpluses made by Saint John Energy.

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Deputy Mayor Shirley McAlary says the proposed changes in the report will do little to avert millions in cuts to city services, which will have to be made at the end of next year. 

"It's not addressing 2021 or 2022," said McAlary. "You can say whatever you like, it's not addressing that, and it's not just $12 million.  It's $12 million for 2021 and $12 million for 2022.

"That's a lot of staff and a lot of services that we've got to cut over the next number of years." 

'Politically motivated'

Premier Blaine Higgs presented the revised report to city councillors at a closed door meeting last week.

Local Government Minister Jeff Carr was pleased with council's approval of the document Monday night.

But he disputed city claims that the city will have to make $12 million in cuts by 2022.

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He claims the changes being offered by the province are worth several million annually.

"They keep throwing out that $12 million number," said Carr. "To me it's politically motivated for a couple of them."