N.B. city mayors upset over PC property tax plan

New Brunswick's city mayors warned Progressive Conservative Leader David Alward on Thursday that they don't like his property tax plans.

Alward's Tories have laid out a proposed series of property tax reforms during the election campaign, including a promise to permanently freeze assessments for senior citizens.

Six of the eight New Brunswick city mayors say their municipalities cannot afford that commitment, but Alward is sticking with the promise.

"Certainly, they have concerns," Alward said after meeting with the mayors in Fredericton.

The mayors told him that if he wins the election and permanently freezes property tax assessments for seniors, it could force cuts at city halls across New Brunswick.

'Not all seniors need assistance and as a result of that, we don't know what the financial implications are going to be.' — Saint John Mayor Ivan Court

Bathurst Mayor Stephen Brunet said cities are extremely limited in how they can raise money, and Alward's plan would turn off the tap on their primary source of revenue.

"Eighty-four, 80 to 90 per cent of our revenue comes in from property taxes, so when that's tampered with, when that's juggled with, it really affects the monies we have to buy the very essential services we provide," Brunet said.

Saint John Mayor Ivan Court said it would be a mistake to freeze assessments for all seniors regardless of income.

"Not all seniors need assistance and as a result of that, we don't know what the financial implications are going to be," Court said.

The mayors' criticism of the property tax plan came after the ruling Liberals took aim at the financial impact of the property tax promise made by their top rivals.

Liberal Greg Byrne, the finance minister, said the tax freeze for seniors would cost upwards of $1 billion in lost tax revenue over a decade.

Byrne said that would transfer a huge tax burden on young families, small business, tenants and families.

The Liberals have told voters they will freeze property tax assessments temporarily to offer some relief to homeowners.

Other problems

Other problems have also been raised with the Progressive Conservative promise to freeze assessments for seniors.

For instance, the assessment system doesn't track the ages of property owners, so the provincial government doesn't know who actually qualifies for the program.

Alward said he realizes property tax revenue is vital to municipalities but the only promise he made the mayors is that he'll listen to them.

"My commitment was there'd be an open door to dialogue on an ongoing basis," Alward said.

When Brunet was asked how much dialogue Alward had with the mayors before he made his budget-busting promise, the Bathurst mayor said simply, "none."

The future of local governance reform was put squarely back on the political radar on Thursday.

Jean-Guy Finn, the former commissioner of local governance, wrote in a CBC News analysis that the next New Brunswick government must address local governance.

Finn argued that significant local governance reform is needed and small adjustments, such as taxation, are not enough. Finn argued for slashing the number of municipalities to between 50 and 55 from 421.

Liberal Leader Shawn Graham said New Brunswick cannot afford the $90-million price tag to implement the Finn report.

Alward, however, said the issue was too important to have the report stay on the shelf.

"We need to focus less on changing identities and more on the services that we provide to our citizens," Alward said Thursday.