St. John's holds line on most taxes, while adding to Metrobus and capital works

The City of St. John's has tabled a balanced budget for 2025, with increased spending in areas like capital works and Metrobus — and a decrease in funding to St. John's Sports and Entertainment.

The city's 2025 budget comes in at $349.1 million, an increase of 1.5 per cent from this year.

Coun. Ron Ellsworth, the city's lead on finance, said Tuesday the city aims to "hold the line and ensure that every dollar is spent wisely."

As a result, the residential and commercial mil rates will hold at 9.1 mils and 29.5 mils, respectively.

"The priority in here for us, obviously, was trying to maintain the mil rates," Ellsworth told reporters Tuesday. "There is no property tax increase in mil rate or assessed values."

Residents will see a small increase in their water tax bills — $15 per unit for residents and a 2.22 per cent increase for commercial units — driven by the rising costs of electricity and water treatment chemicals to the tune of $1.4 million.

Ellsworth also outlined several key investments the city is making, including $25 million for capital work projects like roads, sidewalk repairs and traffic safety.

It's also putting $2 million into sidewalk snow clearing.

Council is adding $598,000 to the budget of Metrobus, which operates the city's transit system. That follows a $1.4-million cut to Metrobus a year ago. 

The city is increasing money for the city's grant program, which provides financial assistance annually to organizations and individuals whose applications align with the City's strategic directions, up $143,000 to a total of $1.6 million.

There's also a $703,000 investment in a new economic development agency called Advantage St. John's. The agency is a partnership between St. John's, Paradise and Conception Bay South to "collectively elevate economic development opportunities and build stronger and more resilient communities in the region."

But while the budget features several increases, there's also a notable decrease.

The city is reducing the operating grant for St. John's Sports and Entertainment — which owns the Mary Brown's Centre — by $727,000.

The city said the reduction follows a rise in bookings at the venue and at the neighbouring St. John's Convention Centre, which is projected to increase revenue streams and offset operating costs.

The Mary Brown's Centre lost its anchor tenant, the Newfoundland Growlers, in April.

The venue still houses the Newfoundland Rogues basketball team, and has hosted several concerts and other sporting events — including the Grand Slam of Curling, which concluded earlier this month — over the course of the last year.

No new money for housing

The city is also holding firm on its housing budget, despite residents saying affordable housing was the community's top issue in a recent survey.

Ellsworth says the city is maintaining spending for the 476 non-profit housing units it owns and operates, which costs the city $2.3 million. There's also no new money for new units. The city wants to maintain and upgrade their own units and build new units through the private market.

"We made it clear from the beginning that the affordable housing component piece is not something that we are able to address or take on financially," Ellsworth said.

"We're really seeing a big uptake in the number of units coming to the market and be available to the general public. So while we may not be doing it ourselves, we are certainly clearing the way for other organizations."

End Homelessness St. John's gave the city four recommendations in its community plan released in November, which centred around building more housing, supporting safe neighbourhoods and designating resources to building affordable housing.

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