Fredericton budget passes despite last-minute concerns over affordability

Fredericton city council avoided an attempt by a few councillors on Monday to send the 2025 municipal budget back to staff in hopes of finding $3 million to $4 million in savings.

The $180-million budget was first presented to councillors earlier this month and was approved in principle at the time. It allocates funds to double the frequency of buses on the busiest routes and provide year-round patrols from uniformed security officers.

The budget returned to council for a final vote Monday, but Coun. Steven Hicks tried to defer the vote.

"I realize we have significant challenges, we're a growing city and this budget has all kinds of great things in it, things we need to do. But there's nothing more challenging than trying to feed your family, put clothes on your kid's back," Hicks said. 

"At some point we need to cut the budget, and we need to make a difference for homeowners," he said.

Hicks made an amendment asking staff to come up with proposals to reduce the inside tax rate by 3 cents and freeze the outside rate, and to defer the budget vote until that was available.

When asked by councillors, city treasurer Alicia Keating said the proposed three-cent reduction would translate to between $3.5 million and $4 million in cuts. Sara DeGrace, the city's deputy chief administrative officer, added that staff had already found $3 million in savings and any further cuts would impact city services.

Coun. Eric Megarity agreed with Hicks. Calling the budget the most important legislation council passes annually, he advocated for having "a sober second thought."

Despite what he described as good funding on public safety, "I think we have to take a pause, I think we have to do a little for diligence, we have to flip those rocks over and see if we can tighten our belts a little bit," Megarity said.

But several other councillors disagreed with deferring the vote. Coun. Ruth Breen said she understands the importance of affordability, but said they had put together a "responsible" budget.

"I myself struggle with the budget, but I'm okay with [the proposed tax rate in] a year when I see the work that it's doing in the community," Breen said.

Coun. Greg Ericson, chair of the city's finance committee, said he agreed with the points from Hicks about the need for affordability. But he said he was against the motion because the concerns should have been brought up earlier in the process. 

He characterized the concerns brought up by Hicks as "awkward" for suggesting that staff hadn't been fully focused on finding all possible cost reductions.

"City staff have been looking for savings for the entire year, and so have every member of council if they've been following along with duties that are tasked to us."

Coun. Bruce Grandy said he was "perplexed" to see proposed changes to the budget at the last minute, adding that it would be a "shot in the dark" for city staff to come up with service reductions at this point.

Deputy Mayor Jocelyn Pike said she's constantly hearing concerns from constituents about safety, and with a budget that has increased public safety resources, she can't vote against it.

After comments from other councillors, Hicks thanked them for responding but said he felt compelled to bring up his concerns after hearing from residents about rising costs. 

"There's no rush to get this in, you know," Hicks said.

Hicks's motion to defer the budget was ultimately voted down. Only he, Megarity, Coun. Mark Peters and Coun. Margo Shephard voted for it. 

In an interview after the meeting, Mayor Kate Rogers said the tax rate isn't the only way to address affordability.

Some residents don't own property, she said, but more reliable transportation could mean people don't need a vehicle, which saves them money.

"The most important thing that we can deliver as municipal government is value for services, and I feel confident that we are delivering that in this budget."

The tax rate of the budget was then approved by council, with Hicks and Megarity voting against. 

The approved budget will see the inside tax rate decreased next year to $1.3086 per $100 of assessed value from $1.3286.

Councillors also voted to increase the outside tax rate to $1.1565 per $100 of assessed value from $1.1065. The is the rate paid by residents who enjoy fewer services. Residents of areas newly annexed by the city through local government reform would also see their rate go up.

The changes will bring the city over $11 million more in revenue over last year, for a total revenue of just over $180 million.