Adjustments Added To Proposed Operating Budget

Another discussion regarding Saint John’s proposed 2023 general fund operating budget at Monday’s finance committee meeting.

The budget totals $177,287,500 with the proposed tax rate set at $1.62 per $100 of assessed value.

“That is up 7.6 per cent year-over-year from 2022, or $12.6 million increased annual investment in the community with 80 per cent of this budget being funded by tax revenue,” said Kevin Fudge, chief financial officer for the City of Saint John.

“The recommended property tax rate is $1.62 per $100 of assessed value, along with the recommendation to increase both the non-residential multiplier and the heavy industrial multiplier from 1.5 to 1.7.”

Until now, the non-residential rate was automatically set at 1.5 times the residential rate, but legislation passed earlier this year now allows municipalities to set the rate between 1.4 and 1.7.

Fudge mentioned even with the proposed nine-cent tax rate reduction year-over-year, property tax revenue will increase 8.1 per cent from 2022 levels.

“Moving the budget from $131.5 million in property tax revenue collected in 2022 to $142.1 million in property tax revenue collected in 2023,” he said.

Two adjustments have been added to the second draft of the operating budget.

Those adjustments include $800,000 for new community improvements and $50,000 for additional funding for community grants.

The draft will go to Common Council for approval at a later date.