Southern N.B. cities propose property tax cuts for 2022

Some New Brunswick cities are looking to cut their property tax rates for 2022 because higher assessed values are boosting their budgets.

The overall provincial tax base grew by 7.7 per cent this year, according to Service New Brunswick - or $5.2 billion - due to new construction and real estate sales.

It means a windfall for some municipalities, which are now in the midst of their annual budget deliberations.

In Moncton, assessed property values have increased by 10.89 per cent, according to municipal budget documents posted online. And the city is looking at reducing the property tax rate by 10.25 cents to $1.5472 per $100 of assessed value.

In Saint John, an online budget proposal shows assessed value up by 6.2 per cent and the finance committee proposing a 7.5 cent reduction in the tax rate, which would take it to $1.71 per $100.

In Fredericton, assessed property values are up by an average of 9.2 per cent. And this week city councillors voted to cut the property tax rate by 2.25 cents to $1.4086 per $100.

The consensus on council was that 2.25 cents was "fair," said Henri Mallet, chair of Fredericton's municipal finance and corporate administration committee.

It will allow the city to "address some needs" and "give back to citizens," Mallet said.

Despite the rate cut, Fredericton homeowners will see their tax bill increase by hundreds of dollars.

Average house assessments in the city have risen to $252,464, said Mallet. That means an average tax bill will increase by $348 to $3,556.21.

City revenues, in turn, are expected to increase by about $8 million, he said.

Spending will increase on renewing infrastructure, such as roads and pipes.

"The longer that we push those down the road the cost gets higher and higher," Mallet said.

The extra money will also help cover increasing costs, he said, such as solid waste tipping fees, insurance premiums and other bills that need to be paid.

• Moncton budget proposes cutting tax rate after assessments soar

The planning department will get an additional staff member to help with big projects like reviewing the heritage bylaw and developing a plan for the city core.

Building services will gain a new "environmental" staff position, said Mallet, to help ensure facilities are as energy efficient as possible.

An extra sidewalk plow operator will be hired.

A sidewalk ice-breaker project will be piloted.

And side streets, known as "Priority 3", will get some salting in winter.

The city is foregoing an extra $2 million it would have collected, had it not cut the property tax rate.

In that scenario, average tax bills would have been almost $60 higher at $3.613.01.

Some councillors had suggested that extra money could be spent on things like housing, environmental initiatives, and trail safety, said Mallet.

They also debated an even bigger cut to the tax rate — four cents per $100 of assessment — but that was voted down, he said.

"We also need to balance our budget."

It's a much different financial position than the councillor has ever seen in his time at City Hall.

"For the last five years the budget was really thin," he said.

Capital spending had to be cut in order to maintain services, said Mallet, after assessments were frozen in 2018, and revenues fell last year due to the pandemic.

The full city budget is scheduled to be voted on Nov. 22.

Other cities

Budget deliberations in Moncton are taking place this week.

If all goes well, said city spokesperson Isabelle LeBlanc, the budget may be ratified Friday. 

Dieppe had the highest tax base growth in the province at 12.75 per cent. 

Its budget will be presented Nov. 15.

It's a different situation in northern New Brunswick, where tax bases have also grown, but by smaller margins.

The City of Campbellton will release its budget information on Nov. 15 as well, said Mayor Ian Comeau.

Tax base growth in that city has been 2.99 per cent, he said.

"Maintaining our tax rate would be ideal for us at this time," said Comeau.

Edmundston is "not in the same boat as Fredericton, Moncton or Saint John in regards to increased assessed values," said spokesperson Mychèle Poitras.

Its budget is scheduled to be adopted Nov. 9.

In Miramichi, the tax base has increased by 4.42 per cent, but a tax cut has not been proposed, said treasurer Nancy Gorman.

The final budget is expected to be presented Nov. 9.

A budget presentation and approval meeting in Bathurst is planned for Nov. 15.

According to the province, Bathurst's tax base grew by 5.84 per cent.