The exterior of Saint John City Hall is pictured in this file photo. (Staff photo)
Saint John’s finance committee has approved the city’s proposed draft budget for 2021, sending it on for Common Council to review at its next meeting.
The budget aims to close a $10-million structural deficit after three years of financial assistance from the provincial government
“We’re maintaining reserve fund balances, we’re addressing our debt, we believe we’ve increased flexibility,” said Kevin Fudge, the city’s finance commissioner, about the proposed budget.
The budget assumes a 1.5 per cent increase in the tax base and shows a nearly $9 million reduction in operating costs, which includes the $6 million in workforce cuts recommended during the spring’s sustainability report. It also maintains reserves at a minimum of $2 million.
The budget also includes a number of previously announced projects, including the new economic development agency and the integrated customer service centre.
Fudge says this is the first time the budget has been structurally balanced.
“As long as we continue to follow these financial policies put in place by the finance committee, and we achieve what I believe are conservative growth objectives in our long-term financial plan, we can put austerity in our rear-view mirror and continue down the path of stability and prosperity,” he said.
The finance commissioner says this is the earliest turnaround for a municipal budget he can recall.
Council will receive and file the budget at its meeting next Monday before considering it for approval on Aug. 31.
