Fredericton city councillors have approved an operating budget for 2023 of nearly $153 million, which includes a seven-cent decrease in the property tax rate for most residential property owners.
A motion at Monday’s budget meeting was approved in principle, meaning it was agreed upon, and the budget must be officially voted on at next week’s council meeting.
The seven-cent decrease in the property tax rate would apply to the “inside” rate charged to Fredericton households that have full access to services, such as water and sewer. It would lower the amount they pay per $100 of assessed property value to around $1.34.
The cost of sidewalk patio permits and parking would also go up.
The “outside” rate, which is charged to residents who receive fewer municipal services, would remain the same, roughly $1.06 per $100 of assessed property value.
- Fredericton councillors consider 5-cent property tax increase for households joining city
- Cost of parking at some Fredericton meters could increase 50%
Residents in areas to be annexed by Fredericton on Jan. 1 will see a five-cent increase in the tax rate, which was already approved in principle at an earlier budget meeting, because of the increase in municipal services. These areas include St. Mary’s, Douglas, Pepper Creek, Estey’s Bridge, Lakeside Estates and Lincoln. These areas will also pay a road tax, which is retained by the province for services provided.
In an email on Tuesday, Alicia Keating, city treasurer, provided some information on what property taxes may look like for homeowners with these changes. She said the information provided uses the average home value of $292,502, which she said comes from Service New Brunswick.
According to Keating, residents under the inside rate would pay an average municipal property tax amount for 2023 of $3,915. For those under the outside rate, the average property tax amount is $3,090.
Here are annexed areas with average rate assessments for each location along with $1,204 in provincial road taxes:
- St. Mary’s is $1,509, plus the road tax, totalling $2,713.
- Douglas is $1,839, plus the road tax, totalling $3,042.
- Pepper Creek is $1,839, plus the road tax, totalling $3,042.
- Estey’s Bridge is $1,839, plus the road tax, totalling $3,042.
- Lakeside Estates is $1,715, plus the road tax, totalling $2,918.
- Lincoln is $1,475, plus the road tax, totalling $2,678.
Council also agreed in principle that nearly $26.9 million be earmarked for capital projects in 2023, and $643,000 for strategic partner and community grants.
The budget come back to council for formal approval on Nov. 28.
This story was originally published in CBC News on Nov. 22, 2022.
Hannah Rudderham Portfolio 