Moncton council tells staff to draft budget with eye to tax-rate cut
Staff proposal approved at Monday committee would still boost capital, operations spending
Moncton council has directed city staff to draft a 2025 budget that would boost spending while still lowering the tax rate.
Councillors unanimously voted in favour of a strategy outlined by Jacques Doucet, the city's chief financial officer, during a committee meeting Monday.
Doucet said the strategy aims to address rising property tax bills while still allowing the municipality to spend on services and infrastructure.
The city forecasts provincially set property assessments rising by 10 per cent next year. The strategy calls for not using the entire amount, effectively resulting in a tax rate cut.
"We would use a 5.5 per cent overall property tax revenue increase to prepare our budget to make strategic investments and that would also provide some property tax relief, or mitigate the property tax increases for our taxpayers and developers," Doucet said after the meeting.
That would roughly equate to an additional $4.9 million in property tax revenue next year, money Doucet said could fund various municipal priorities.
Under the strategy, the tax rate could drop to about $1.3649 per $100 assessed value, down from $1.4231.
The proposal approved by the committee also calls for a $3 million increase in capital, or infrastructure, spending next year. The 2024 capital budget is $61 million.
Doucet noted the city has a number of operating and capital projects, some that have yet to be factored into the city's long-term budget.
He noted there's a study underway for a satellite library branch, and the city has been discussing new aquatics facilities.
"We're in a stable financial position, but there are challenges that exist," Doucet said.
Inflation and interest rates have increased city costs.
He said roadwork carried out in 2019 that cost $2.1 million cost more than $4 million this year.
The strategy wouldn't result in lower property tax bills but a smaller increase.
A home valued at $250,000 could see its tax bill rise $356 next year to $3,914 based on the assumed 10 per cent assessment increase under the current tax rate.
If that tax rate dropped based on the proposal Doucet presented Monday, the tax bill would instead increase $195 to $3,753 next year.
They're figures that could change as the budget is prepared. Councillors will review and approve the budget in November.
The city cut its tax rate in 2022, 2023 and 2024.
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