With the new Saint John council expected to pass its first budget later on this year, a property tax increase is not something that mayor Don Darling is supportive of despite the financial pressure facing the city.
Saint John already has the highest property tax rate of any of the municipalities in New Brunswick at $1.785. 79-percent of the city’s $151.5-million general operating revenues come from property taxes. Revenue from property taxes is projected to be flat or negative in 2017.
“It would be difficult for me to bring any motion forward to raise taxes,” says mayor Darling. “I understand the burden of tax in Saint John and I think Saint John is unique in its size and in some of the challenges it faces.”
A recent motion by councillor-at-large Gary Sullivan for council to set a target of reducing the tax rate by one cent per 100-dollars of assessed value was tabled and the mayor says he believes that was the correct thing to do.
“That was the right decision in my view to table it until we get through the priority setting and these budget numbers become more solid into the fall,” says Darling.
Financial challenges the city is facing, according to City Manager Jeff Trail, include the debtload, that operational spending is outpacing revenue growth, reliance on unconditional grants when they’ve been inconsistent, and that salaries are expected to increase by an average of $2.3-million a year over the next five years.
