Cities optimistic PCs will follow pledges of greater municipal power

Municipal politicians say they're optimistic their calls for greater powers and taxation ability will be heard now that the PCs are set to take power on a platform that echoed many of their demands.

The PC Party's platform had several commitments for cities, including support for a hotel tax

Shane Magee · CBC News · Posted: Nov 07, 2018 6:00 AM EST | Last Updated: November 7, 2018

Blaine Higgs, New Brunswick's premier-designate, promised a number of changes to municipal powers in the recent provincial election. (CBC )

Municipal leaders are hopeful the incoming provincial government delivers on promises to provide community governments greater power.

Adam Lordon, mayor of Miramichi and president of the Cities of New Brunswick Association, said he's optimistic the Progressive Conservatives will act on reforms the group representing the province's eight cities have sought.

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Several Moncton council members also spoke Monday about their hopes for change, including a share of cannabis tax revenue and a hotel room tax. The levy on hotel room bills can be applied if approved by the regional marketing authority, but politicians and tourism groups have pushed for it to be made mandatory.

Mayors from New Brunswick's eight cities outlined their wants from the next provincial government in August. (Connell Smith/CBC)

Moncton's mayor and deputy mayor both pointed to the city's loss of the Brier men's curling championship as an example of the need for a hotel tax that could generate revenue to bid on large events.

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"This would allow Moncton to be competitive in attracting large events without depending so heavily on taxpayer dollars," Coun. Greg Turner said. "Hopefully we can lobby and work with them to see this come to fruition."

PC Leader Blaine Higgs told Saint John councillors Aug. 20 that the party is "committed to municipal tax reform" and expressed an openness to sharing cannabis revenue.

Former Liberal minister Rick Doucet speaks with Saint John Mayor Don Darling prior to a council meeting in August. (Joseph Tunney/CBC)

The party's election platform is sprinkled with commitments that echoed demands from the province's cities.

It included support for a hotel tax, looking at what provincial regulations should instead be controlled by municipalities and overhauling the Local Governance Act to give communities more powers over taxation and assessment.

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The act, passed by the Gallant Liberals, replaced the decades-old Municipalities Act and came into force at the start of this year.

Lordon said it was a welcome change, but "we didn't think it went quite far enough."

The PCs also promised to gradually end double taxation. Non-owner occupied properties such as apartment buildings or cottages are taxed municipally and by the provincial government, something landlords have sought to end.

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The platform also committed to establish "provincial standards for rental properties." The party pledged to give municipal governments power to enforce those standards through expropriation, renovations or demolition of problem properties.

The platform also supports "regionalization."

Calls for 'regionalization'

Moncton Coun. Blair Lawrence on Monday said he wants the province to look at that.

"Whether or not that's a political regionalization, we need to think more and more about economic regionalization," Lawrence said. "At every step of the way, when there's an opportunity, the regions need to get together."

Unsaid, though, was the contentious 'a' word: amalgamation.

Adam Lordon, Miramichi mayor and president of the Cities of New Brunswick Association, says the group wants the province to look at how people who live outside municipal boundaries could help pay for the services they use in urban areas. (CBC)

Lordon said it's too soon to say whether amalgamation of more than 300 cities, towns, villages and unincorporated local service districts will be pushed by the province.

He said the province faces a number of structural issues, including the local governance model.

He said the association wants a "conversation" about how people outside municipal boundaries could help pay for services they use inside those communities, such as city roads.

Funding concerns

But there was also concern expressed Monday in Moncton about whether equalization payments the city receives may face cuts as the PCs seek to balanced the provincial budget.

The city received $6.9 million worth of equalization and core funding grants from the province in 2018.

"If there's higher pressure on health care or other requirements — affordable housing, things like that — money may go there, thereby less money goes to the cities whether through equalization or other areas they may support," Gregg Houser, Moncton's acting chief financial officer, told reporters after the council meeting.