Municipal Fiscal Reform - Election 2024

Between 2021 and 2023, the Government of New Brunswick implemented the most profound reform of local government since Equal Opportunity in the 1960s. This resulted in the reduction in the number of municipal entities from 340 to 89 and greatly expanded the mandates of 12 Regional Service Commissions.

This reform caused a significant shift in responsibility for key public services. While structures and service ownership have changed, the ability to pay for this new service delivery model has not kept pace. 

The Regional Service Commissions (funded partly by municipalities) are now responsible for areas such as:

  • economic development
  • tourism
  • community and social development
  • public safety 

The province has downloaded responsibility for many services to the City. 

The New Brunswick government says it will usher in Part 2 of the Local Governance Reform (fiscal reform) by Jan. 1, 2026. In the meantime, municipalities such as Moncton are severely strained to pay for services within the current financial framework. We are structurally underfunded. Moncton receives just eight cents for every tax dollar collected from its citizens.

What Moncton needs

1 - The provincial government collects $61 million in property taxes in Moncton (minus $14 million of tax on provincial buildings) per year. Transfer the net $47 million in provincial tax revenue to the City. The City would then be able to work with the Province to lower the rate for non-owner-occupied dwellings (double tax) to be more competitive with our counterparts across Canada.

2 - Commit to the transfer of one per cent of HST revenue to municipalities. The current government has estimated this at $225 million per year. This revenue share to municipalities should be on a per capita basis, meaning that Moncton, which, according to the latest Statistics Canada data, has a population of 91,085, should receive 11 per cent of that $225 million – or approximately $24.5 million per year.

3 - Fulfil the existing promise of transferring the excise tax on cannabis sales. In 2022-2023, this represented $13 million to the province. On a per capita basis, this would make available $1.4 million to Moncton.

4 - Undertake a review of provincial tax assessment legislation and create a true and fair equalization formula. Our legislation governing assessments and real property both date to 1973.

5 - Implement Part 2 of Local Governance Reform – Financing – in time for the 2025-2026 provincial budget – and not by Jan. 1, 2026.