Need for fiscal reform in focus at municipal forum with political leaders

A group representing the province's municipalities hosted a panel for political leaders on Thursday night that highlighted the need for fiscal reform as the provincial election campaign gets underway.

The Union of the Municipalities of New Brunswick and L'Association francophone des municipalités du Nouveau-Brunswick co=hosted the event, with several hundred mayors, councillors and local officials present.

Liberal Leader Susan Holt and Green Leader David Coon put forward promises and criticized the current government, while Local Government Minister Glen Savoie attended on behalf of Progressive Conservative Leader Blaine Higgs to defend their record.

The Higgs government implemented local governance reforms in 2023, creating or expanding municipalities, and also promised fiscal reform. Municipalities have called for better tax-sharing with the province to generate more revenue. 

"We are going to tackle what the Higgs government has not finished, and that is get after fiscal reform urgently on day one of a mandate, and do it as quickly as possible," Holt said.

Savoie pushed back, saying "I know it's been asserted through here tonight that fiscal reform is not happening. It is happening. Right now."

He criticized the other two leaders for making promises and said they were simplifying complex problems.

Fiscal reform in each community needs to be looked at separately "because the solution for Saint John with a heavy industry presence might not be the same for Beausoleil or Five Rivers," Savoie said.

Despite financial issues, he said municipalities should not be dependent on residential property taxes. He said the province has spent $25 million to upgrade Service New Brunswick systems to give municipalities more flexibility on taxing.

With municipal reform, Savoie said change is never easy.

"Successive governments have avoided addressing municipal reform because it was challenging, but this government had the courage to do that," Savoie said.

Reforms were first recommended in 2008 but were shelved by Brian Gallant's Liberal government.

Savoie said the most common concern he hears from mayors is about red tape from the federal Canadian Mortgage and Housing Commission.

"I think when you look at affordable housing and the crisis we're experiencing, some of this challenge is due to growth, which we're not used to."

Concrete promises

Coon said he is in favour of transferring the "vast majority" of industrial tax to municipalities, a move that would especially benefit Saint John. Coon also said he would transfer one per cent of the HST to municipalities and implement a tax system where landlords who charge lower rents would be awarded lower property tax rates.

Holt promised to immediately undertake "a total reform" of the property tax system, with interim measures for 2025 while the full reform comes by 2026. She also said she would give more power to municipalities to deal with vacant land and derelict properties, an issue that has appeared in municipalities like St. Stephen.

"Work has to be done in partnership with municipalities," Holt said.

Savoie said he would not make any concrete promises.

"I haven't promised you anything other than to ensure that I will continue to work hard for you, and to work hard with you to ensure that your needs are met," he said.

Both Coon and Holt said the province needs to review the responsibilities of Regional Service Commissions, which have seen their responsibilities grow under Higgs.

Throughout the forum, leaders repeated that a "one size fits all" approach doesn't work, and mayors and councils should be more involved in decisions.

Coon called out Higgs for what he called a failure to address homelessness, mental health, addictions, affordable housing and health care, which he said have become burdens pushed onto municipalities. 

"We're going to ensure you don't have to spend money on things the province should be spending money on, and that is to ensure the provincial government takes its responsibility to address issues within your communities that are fully within the jurisdiction of the province," he said.

Mayors firm on need for fiscal reform

After the meeting, Salisbury Mayor Rob Campbell said municipal reform has gone well. 

"But not coupled with the fiscal reform, which we need. It's been very hard to operate," he added.

"We worked on municipal reform in partnership with government. Now we expect fiscal reform not next year, not into 2026, we expect it to happen right after the election," he said.

Nouvelle-Arcadie Mayor Jimmy Bourque agreed.

"We're a community that's really struggling financially. Our taxation is very high for our community," he said.

Bathurst councillor and former mayor Stephen Brunet said he was encouraged by all three parties promising more communication.

"When it seems like the election is over, provincial government is gone. We don't see them at our meetings. We don't see them at our community all the time," Brunet said.

Municipal government is closest to the community, he said.

"We can't go to the grocery store or the bank without someone stopping you and saying, 'What about that street? What about that pothole?'"