City of Moncton reduces tax rate for fourth year in a row, makes strategic investments in key services 2024-11-28

The City of Moncton’s 2025 budget both reduced the residential tax rate and invested additional funds in key services such as public transportation, community safety, active transportation, social issues, environmental initiatives, and recreational activities.

Moncton City Council approved the budget at a special public council meeting on Nov. 28.

The City reduced the tax rate for the fourth year in a row as a means to offset the assessment increases most property owners are facing. The rate dropped another 6.2 cents to $1.3614 per $100 of assessed value. The tax rate has dropped by nearly 29 cents since 2021.

“Moncton has experienced strong growth in its assessment base over the past four years due to rising property values in the city and new construction,” says Jacques Doucet, general manager, Finance Services. “This growth provides us with some flexibility to enhance and grow our services to residents while mitigating property tax increases for citizens who have seen their assessments go up.”

Council held two days of public deliberations on Nov. 26 and 27 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  

Highlights of the 2025 Operating  Budget ($223.8 million) 

  • The tax rate will decrease by 6.2 cents to $1.3614 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 2.5 cents to a total of $0.9908 per $100 of assessment ($0.5793 to the City of Moncton and $0.4115 to the Province of New Brunswick.)  
  • Non-residential (commercial) tax rates will be $2.3144 per $100 of assessment, or 1.7 times the residential rate, a decrease of 4.85 cents from 2024. 
  • The City’s debt ratio is projected to be 9.8 per cent at the end of 2025, well below the 20 per cent limit allowed by the Municipal Capital Borrowing Board. The projected debt by the end of 2025 for the general operating fund is $134.8 million. 
  • 38 new positions were added, including four firefighters, 17 staff at Codiac Transpo, five municipal support staff in policing, one new staff member in building inspection, and a community development officer for seniors and youth.
  • A total of $1.8 million is being invested in operations at Codiac Transpo, including funds to support extending services.
  • The City will contribute $10.6 million in grants to local organizations and entities who provide services on behalf of the City. This includes an increase of $750,000 for Ability Transit Services and $737,000 for Moncton Industrial Development.

Highlights of the 2025 Capital Budget ($72.8 million)

  • $14.6 million – water, sewer, and storm sewer construction and upgrades
  • $21.7 million – road reconstruction, resurfacing, traffic calming, and related infrastructure
  • $1 million – active transportation 
  • $5.2 million – facilities construction and improvements
  • $8.75 million – venue improvements, including work at the Moncton Coliseum, St. George Street improvements, and future development and construction of city-owned facilities in Downtown Moncton
  • $4.2 million – parks and recreation, including:
    • $1.1 million – new and upgraded trails
    • $600,000 – Savannah Heights Park
    • $300,000 – disc golf facilities
    • $500,000 – feasibility and design work for an aquatic facility
  • $4.6 million – infrastructure improvements at the Magnetic Hill Zoo
  • $3.4 million – ladder truck and other fire equipment
  • $400,000 – information technology upgrades
  • $8.6 million – equipment, infrastructure, four diesel buses, and one electric bus for Codiac Transpo

The City will borrow $26.9 million to fund capital projects in 2025. To control debt, $17.3 million from the operating budget will be put toward capital budget projects. The City also seeks external funding and leverages recovery programs from third parties and other levels of government to fund its capital projects.

Highlights of the 2025 Utility Budget ($46.2 million) 

  • Utility rates will increase slightly in 2025. 
  • A typical household, based on the average of 272 cubic metres of usage per year, will pay approximately $1,128 for water and sewer services in 2025, up $13 per year or $3.25 per quarter from 2024. 
  • Commercial customers will see increases of one to two per cent, depending on the usage per year and the service line size.

Information:

Communications, City of Moncton 
communications@moncton.ca

Category: News