Mayor Don Darling calls the possible budget shortfall next year “scary”.
The Finance Committee has been warned the budget shortfall next year could be as high as $5.4 million.
Darling says the potential shortfall is due to wage increases, a decrease in the city’s unconditional grant due to a population decline, and other variables.
The recent census shows the city’s population dropped by roughly 2400 people, which could result in a cut to the city’s unconditional grant from the province of about $3 million.
Darling says his signal to the provincial government is that Saint John cannot withstand that kind of drop to its unconditional grant.
He says the city has not gotten any smaller and the challenges that face the city have not diminished in any way.
Darling says the tax assessment of Canaport LNG will benefit the city substantially because it’s an extra $27 million over the remaining period of the original deal, if an appeal is not made.
Irving Oil has 30 days from receiving its assessment to decide whether or not to appeal.
