Some Saint John councillors want to see more money spent on affordable housing and community centres next year.
The discussion came up Monday night as council deliberated the city’s proposed $177-million operating budget.
Next year’s budget — which is $12.6-million higher than this year — includes a nine-cent reduction to the residential tax rate, bringing it to $1.62 per $100 of assessed value.
However, the non-residential and heavy industry tax rate would increase to $2.754 from $2.565. Given more leeway from the province, the city has chosen to increase the multiplier to 1.7 from 1.5.
As part of the budget, staff recommend setting aside $3 million in reserves for a future new recreation facility.
Coun. Brent Harris questioned whether that is the right choice given the housing crisis the city currently faces.
“I think we need a one-time response at least this year. We need to fund something that’s going to radically change the game on housing here in this city,” said Harris.
According to the budget, the city has $2.6 million available for affordable housing next year, which includes $110,000 for an affordable housing planner role and $800,000 to stimulate the development of new units.
But Harris pointed out the $800,000 incentive will only lead to the creation of about 15 new affordable units.
“We’re hemorrhaging faster than we’re building and we have no one there to pick up the pieces. We need to do something different,” he said.
City Manager John Collin said the city plans to apply for federal funding for several affordable housing projects early in the new year.
The city is working with stakeholders to put together a plan and a list of applications they plan to submit, he said, adding they plan to apply for “easily well over $5 million of various projects.”
“Our target is to achieve three to five sound projects, well articulated, well reasoned, showing clear potential and gain on the affordable housing front,” said Collin.
“It puts the onus back on the federal government to fund these projects as opposed to us funding them directly with city money.”
Collin said should it be the will of council to fund another project using municipal dollars, that is their decision to do so.
Other councillors also questioned why the city is not spending more on community centres in the upcoming year.
Coun. Joanna Killen questioned city staff on how much money Saint John currently has in its reserves.
In response, chief financial officer Kevin Fudge said there is currently about $25 million in reserves, including $7.2 million in operating reserves.
“I just don’t get how we can have this much financial stability and not help those in our community,” said Killen.
Coun. Gerry Lowe said he would like to see a community centre set up on the city’s east side.
“We have 90 per cent child poverty in parts of east Saint John. It doesn’t exist anywhere else anywhere near as bad as that, I don’t think,” he said.
Developing a long-term plan for community centres is part of next year’s work plan, according to the city manager.
Collin noted that the current budget does not stop council from approving mid-year initiatives and using reserves to fund them.
Council voted to receive and file the council presentation. The budget is scheduled to come back for final approval on Dec. 12.
You can view the full budget presentation by clicking here.
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