Moncton budget proposes cutting tax rate after assessments soar

Moncton staff have proposed cutting the city's tax rate six per cent next year as a result of rising provincial property assessments.

The tax rate would be reduced by more than 10 cents from $1.6497 per $100 of assessed value to $1.5472 if the budget is approved by city council. It's the first tax rate change since 2016. 

The assessed value of properties in the city, determined by the province, rose 10.89 per cent, leading council to recommend a tax rate cut. 

The budget indicates a one cent change in the tax rate translates to a reduced tax bill of $22.50 for a home valued at $225,000, and $35 for a $350,000 home. The rate change would affect all types of properties, not just homes.

City staff outlined the proposed 2022 operating and capital budgets during a committee meeting Wednesday. 

The budget forecasts spending $176 million on operations, and $108 million on capital projects like roads, water and sewer systems and on municipal buildings.

Councillors question grant spending

Spending on grants drew the first suggestions to change the budget. The city forecasts spending $7.6 million on grants to community non-profits.

Multiple councillors voiced support for increasing the $25,000 grant to Ensemble, which had sought $51,000 next year. Ensemble presented to council its plans for an overdose prevention site earlier in the week.

"We need to support them as much as we can," Coun. Paulette Theriault said of non-profits that care for vulnerable people. Coun. Bryan Butler moved a motion to increase the funding to the amount Ensemble had requested.

Jacques Doucet, the city's chief financial officer, told councillors they may be able to find room in the budget, but it could also require changes to the tax rate. The request to increase that grant will be considered later this week. 

Others questioned city grants for the House of Nazareth homeless shelter. Councillors have heard from residents and businesses in the area affected by increased drug use and crime related to those using the shelter. 

When the shelter relocated to a larger building on Albert Street, the organization claimed it would offer mental health and other support services in-house but that didn't happen. 

Coun. Marty Kingston asked if they're working to add those services.

Jocelyn Cohoon, the city's director of recreation, said the city is trying to confirm if that's going to happen.

The city has budgeted to provide the shelter with $25,000 grants for three years. Cohoon said some of the grant money the organization requested will be put in a reserve until the city knows what the group plans to do. 

Mayor Dawn Arnold said she liked that approach. 

"We need a bit of leverage there," Arnold said. She said the "elephant in the room" continues to be mental health services under the province's jurisdiction. 

"We have to advocate long and hard to our province on that one," Arnold said. 

The budget doesn't include any of the requested $3 million by the Humanity Project recently. City staff indicated that they are still analyzing the request and will bring a report to council in the future. 

Overall, staff wages, benefits and overtime make up a significant portion of the operations budget at $59 million. The budget shows 693 full-time city staff, down from 697 this year. 

The city's share of the Codiac Regional Policing Authority budget, which covers 70 per cent of the Codiac Regional RCMP budget, at $27.7 million. That's up from $23.4 million last year.

The budget has climbed in part because of a new collective agreement that included salary increases for the Mounties.