Fredericton city council approved the municipal operating budget of about $152.9 million on Monday.
The budget includes a seven-cent property tax decrease for some residential property owners, a five-cent increase for others along with increases to parking costs.
“Due to the changes associated with local governance reform, this has been a budget process like no other at the City of Fredericton,” said finance committee chair Coun. Henri Mallet. “The budget addresses inflation needs being faced by the city, including increased gas and tender prices.”
But not all councillors supported the budget.
‘We’re simply adding to the problem,’ says councillor
Coun. Steven Hicks said the budget has grown 22 per cent over the last two years and 13 per cent over the last year, which he suggested doesn’t make sense considering the inflation many Fredericton residents are struggling with.
“Everything from gas, heating oil, groceries, car prices, house prices, rents, mortgage rates — are all increasing faster than wages,” said Hicks to council.
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“We talk about affordable housing and helping vulnerable people. Well, I don’t know how this budget, 13 per cent increase, helps residents afford to live. It doesn’t. We’re simply adding to the problem.”
He said his comments were not directed at staff, and he understands that staff are just trying to execute council’s priorities. But he said “many of these priorities are complex social issues which we don’t have the resources or expertise to effectively manage.”
Coun. Eric Megarity also voted against the budget, which passed 9-2.
He said he understood both sides and it’s council’s job to be fair to taxpayers, but that they also need to run the city with “some unknowns.”
Megarity said his main concern was the tax rate for “outside” areas — which is charged to residents who receive fewer municipal services than “inside” areas.
He added that the tax rates for the annexed areas are also getting “very close” to the “outside” rate with the new budget.
“I struggle with this,” said Megarity. “I struggled with this for a whole month, and I’m still not there yet.”
But with that, he said he was unable to support the budget “as it is.”
Other councillors, including Deputy Mayor Greg Ericson, Coun. Bruce Grandy and Coun. Jocelyn Pike voiced their support for the budget.
Grandy said one of things that his ward has struggled with has been crime. So he was pleased that the budget included funding for police to address some of these issues.
Ericson, in response to Hicks and Megarity’s concerns, said that council recognizes the financial challenges of municipal households.
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He said since the municipal government’s share is only 11 per cent of total taxes paid by households, he doesn’t think it’s 100 per cent the duty of the city to make sure “households have an affordable experience.”
“Which is why next year, in addition to … looking for sustainable long-term plans and appropriate ways to structure our tax rate, we should redouble our efforts to reach out to the other levels of government to make sure that they own their share of the affordability challenge of our community,” said Ericson.
This story was originally published in CBC News on Nov. 29, 2022.
Hannah Rudderham Portfolio 