Saint John mayor warns city can expect 'serious cuts' in 2018 budget

Saint John Mayor Don Darling has warned the city is facing major cuts in 2018.

The news comes as city management prepares to go into binding arbitration with both the police and firefighters unions.

Firefighters have been without a contract with the municipality since the end of 2014, and the contract for police officers expired at the end of 2015.

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Darling said negotiators for both unions have rejected increases of two per cent for each year of a four year contract.

"We're in this tremendous financial crunch. We're talking about serious cuts," said Darling.

"Very fair and reasonable offers were put on the table. Frankly, offers that I don't even think we can afford."

Now what?

Darling said he's thinking about asking all city employees to take a wage rollback.

The mayor was speaking to reporters after Tuesday's council meeting, where city manager Jeff Trail delivered a report forecasting a 2.1 per cent decline in property tax and other revenue in 2018.

A first class Saint John firefighter makes $79,721 annually, jumping to $102,840 with benefits.

Police constables make $85,819 annually, with benefits bringing that to $110,320.

They want an arbitration process that will just rubber stamp whatever they want to give the police and fire.-Bob Davidson, Saint John Police Association

In his report, Trail said those salaries are rising faster than the cost of living.

He warned settlements awarded by arbitrators could be far higher than the city can pay and recommended municipal leaders push the provincial government to take into account "taxpayer affordability" as part of the arbitration process.

He also recommended the city review costs associated with providing protective services to the city's industrial sector.

Several members of the Saint John Police Association were also in the public gallery during the discussion.

Duane Squires, union president, said the association put a lot of effort into reaching a settlement with the city despite previously agreeing to exchange a defined benefit pension for a less attractive shared risk model.

The association's Bob Davidson said the city is trying to undermine an arbitration process put in place after police and fire unions gave up the right to strike.

"They want an arbitration process that will just rubber stamp whatever they want to give the police and fire," said Davidson. "That's not democracy."