Moncton OKs tax cut for most, slight increase for amalgamated areas

Moncton council approved a 2025 budget Thursday with a lower tax rate for most properties, after debating the fairness of the property tax system in outlying parts of the city.

The budget shaves the tax rate for most of the city by 6.2 cents to $1.3614 per $100 of assessed value. Higher assessment values set by the province will mean most homeowners will still see their overall bills increase.

"I'm very pleased that yet again, we were able to balance our budget while keeping in mind the challenges of growth that we're seeing in our community and what our citizens want as far as services," Mayor Dawn Arnold told reporters Thursday.

Council approved a $223.8-million operating budget, a utilities budget of $46.2 million and a $62.6-million capital budget. 

Votes to approve the budget followed several changes to what city staff initially presented Tuesday.

The changes added $134,000 for seniors programming, $104,000 to make an events-staff position full time, $100,000 for social inclusion programming and $25,000 to increase participation in the 2026 municipal election. 

Council voted 6-5 to reduce the tax increase staff had proposed for parts of the Moncton local service district (LSD) that were amalgamated with the city in 2023.

The draft budget had proposed the maximum allowed by the province — a hike of five cents — but Coun. Bryan Butler moved a motion to reduce that to 2.5 cents.

The motion sparked a debate about whether the amalgamated areas should face the maximum increase year-after-year and whether outlying parts of the city should be charged the same rate as downtown. 

Jacques Doucet, the city's general manager of finance services, said the intention was to equalize the rate across the city.

"Those former LSD areas were not sustainable," Doucet said.

"They did not generate enough revenues to look after the cost to maintain those areas, so a lot of the different municipalities across the province are increasing by the allowable amount of five cents per year."

Butler said he supports eventually getting the areas "caught up" with the rate paid by the rest of the city, but wanted a smaller increase in 2025 as a sign of welcoming the residents into the municipality.

Coun. Daniel Bourgeois said the motion would result in taxpayers in the pre-amalgamation portion of the city subsidizing the newly added areas.

Bourgeois noted council previously rejected his request for a lower tax rate for residents along Salisbury Road he represents who have fewer services.

"Until we are caught up, I'll vote this time exceptionally, grudgingly, with apologies to the people in Salisbury Road," Bourgeois said.

Others said they would oppose the motion because it was coming late in the budget process and raised broader questions of fairness. 

Coun. Susan Edgett said she believes the increases should continue until there is one rate across the city. 

"I feel that's the only fair thing to do at this time," Edgett said.

Coun. Charles Leger said there's a higher cost for the city to provide some services to residents in outlying areas, using an example of increased wear on fire trucks from shuttling water to areas without hydrants. 

"I think the tax system is such that we don't fairly recognize the costs of services," Leger said, adding that he wanted more data and a more comprehensive conversation on the issue.

"Then we need to say, 'well, what about all of the other citizens that are paying full tax rate and not receiving any services either through no fault of their own other than the fact that they went through this years ago as well."

The smaller increase, which shaved off $44,000 in revenue, was approved with Couns. Butler, Bourgeois, Dave Steeves, Paul Richard, Shawn Crossman and Deputy Mayor Paulette Thériault voting in favour. 

Councillors also debated a motion Thursday from Bourgeois not to add 17 more police officers and instead use the money for social workers, psychologists and municipal bylaw officers. 

City staff noted council would need to reject the entirety of the Codiac Regional Policing Authority budget. Doing so would leave it up to the province's local government minister to decide what to do.

Several councillors agreed that adding resources other than police officers are needed, but they couldn't support the motion as presented. The motion failed in a 9-2 vote.

On Monday, Dieppe council also approved its budget with a tax rate of $1.3650 per $100 of assessment for most of the city, a 6.5-cent cut. The rate for the former Greater Lakeburn and Scoudouc LSDs added to the city will increase by five cents.

Riverview council began considering its budget on Thursday. Town staff are proposing a tax rate of $1.3826, a five cent decrease.