City of Moncton reduces tax rate, addresses inflationary pressures 2023-11-09

The City of Moncton’s 2024 budget balances affordability for taxpayers with meeting the pressure of inflation and rising interest rates, while investing in key services such as snow clearing, public transit, social issues, and recreational activities. 

Moncton City Council approved the budget at a special public council meeting on Nov. 9. Council held two days of public deliberations on Nov. 7 and 8 before adopting the final budget, which includes three separate budgets:

• operating budget – funds municipal programs and services
• utility operating budget – funds the provision of water and wastewater services
• capital budget – funds new construction as well as updates to existing infrastructure  

For the third year in a row, the tax rate decreased – this year by 2.1 cents to $1.4231 per hundred dollars of assessed value. Inflation had a $7.8 million impact on the $212-million general fund budget, which was offset by an increase to the assessment base.

“This is a very positive budget. Despite some of the challenges we are facing due to inflation, we are very satisfied with our current financial situation and feel confident we are in a good position to adapt to any financial challenges ahead,” says Jacques Doucet, the City of Moncton’s general manager of Finance Services. “Our aim was to continue to maintain existing service levels, to invest in strategic priorities, and to relieve some of the tax burden on residents by reducing the tax rate and we have been able to meet all of these goals in the 2024 budget.”

Highlights of the 2024 Operating Budget ($212 million)

Tax rates and borrowing

• The tax rate will decrease by 2.1 cents to $1.4231 per $100 of assessment. Residents in the Moncton Local Service District, who were incorporated into the City of Moncton on Jan. 1, 2023 as part of the province’s local governance reform, will see their tax rate increase by five cents to a total of $0.9658 per $100 of assessment ($0.5543 to the City of Moncton and $0.4115 to the Province of New Brunswick.)  
• Non-residential (commercial) tax rates will be $2.3629 per $100 of assessment, or 1.6604 times the residential rate and remain at the same rate as 2023. 
• The City’s debt ratio is projected to be 11.1 per cent at the end of 2024, well below the 20 per cent limit allowed by the Municipal Capital Borrowing Board. The projected debt by year-end for the general operating fund is $128.6 million. 
• An additional $2.4 million from the operating budget will be moved to the capital budget to help mitigate high interest rates.

Social inclusion

• The City has substantially increased its financial support for organizations dedicated to social inclusion – from $165,000 in 2014 to $1.3 million in 2024, not including funding for the Rising Tide affordable housing initiative.
• The by-law enforcement budget has also climbed from $1.3 million in 2019 to $2.6 million in 2024 to support additional community officers to address social concerns.
• $380,000 has been earmarked in 2024 to support the downtown clean-up program run by Downtown Moncton Centre-Ville Inc.
• $100,000 has been placed in a contingency fund to support social inclusion initiatives.

Transit and environmental initiatives

• There was an increase of $824,000 in bus fare revenue and an additional $238,000 in funding has been set aside to extend service for Codiac Transpo in 2024.
• $500,000 has been added to the budget to support Ability Transit Services, which provides transportation service to individuals with disabilities. 
• Two electric vehicles are being purchased for the use of by-law enforcement and plumbing inspection. 
• $50,000 was allocated to begin a car share program in the city.

Operations and grants

• 23 new positions were added, including additional firefighters, operations staff in Public Works and Parks, and staff at Codiac Transpo and the Magnetic Hill Zoo.
• Snow clearing operations received an additional $520,000.
• Additional funding has been allocated to support Polar Fest, the City’s new winter festival, and the summer block parties introduced in 2023.
• Council approved $5.5 million in grants to organizations, an increase of $750,000 over last year.

Planning

• $110,000 was set aside to begin work on the 10-year review of the Municipal Plan.
• $100,000 was allocated to develop a Fire Master Plan to ensure fire services in the city continue to meet the community’s needs. 
• $540,000 was included to implement the City’s digital transformation plan, which will help create more online services for residents and streamline operations.

Highlights of the 2024 Capital Budget ($61 million)

• $16.1 million – water, sewer, and storm sewer construction and upgrades
• $21.8 million – roadwork
• $11.2 million – facilities construction and improvements
• $300,000 – venue improvements, including work at the Moncton Coliseum and the Moncton Market
• $1.6 million – parks and trails
• $894,000 – tourism, culture, and events-related projects, including improvements to Magnetic Hill Zoo facilities and library upgrades
• $4.3 million – fire trucks and related equipment
• $3.7 million – equipment and additional buses for Codiac Transpo
• $100,000 – to begin feasibility and design work for an additional outdoor pool

The City will borrow $9.1 million to fund capital projects in 2024. To manage debt and rising interest rates, $15.1 million of capital projects will be paid from the operating budget. The City also seeks external funding and leverages recovery programs from third parties and other levels of government.

 The City is increasing spending in the capital budget by $4 million per year for the next five years to help mitigate the impacts of inflation while continuing to invest in key areas such as public transit, fire equipment, roads, and active transportation.

Highlights of the 2024 Utility Budget ($44.6 million) 

• Utility rates will increase in 2024. 
• A typical household, based on the average of 272 cubic metres of usage per year, will pay approximately $1,115 for water and sewer services in 2024, up $29 per year from 2023. 
• For commercial customers, overall user changes will increase between two and three per cent, depending on the usage per year and the service line size.

Information:

Communications, City of Moncton 
communications@moncton.ca