As property assessments continue to climb, Saint John is hoping to help reduce the pain for residents.
City staff presented the 2025 draft operating budget to council’s finance committee on Monday.
The proposed $194.4-million budget is about $6.6 million, or 3.5 per cent, higher than 2024.
It includes a three-cent tax cut, from $1.58 per $100 of assessed value to $1.55.
Speaking following the presentation, Coun. Greg Stewart said he likes what he sees in the document.
“Us lowering the tax rate four years in a row is a huge, huge win in my books, and that’s what we need to be focusing on,” said Stewart.
The proposed tax rate cut comes as overall assessments in the city increased by around 6.5 per cent for 2025.
About one-quarter of that growth is coming from new construction with the rest from reassessments of existing properties.
But residential property owners continue to shoulder the burden — something that is concerning to Coun. Paula Radwan.
“There’s a real affordability challenge right now in households. The tax burden really has gone up about $37 million in four years and that’s significant,” said Radwan, who voted against the proposed budget.
The city expects to bring in an extra $6.4 million in property tax revenue in 2025, with around three-quarters of that ($4.8 million) coming from residential property owners.
About $1.5 million will come from non-residential properties while just $61,000 will come from heavy industry.
The city has long called on the province for more flexibility to set tax rates that would distribute rising costs equally.
Municipalities can currently use a sliding scale and set non-residential rates between 1.4 and 1.7 times the residential rate.
Saint John currently has its multiplier set at 1.7 for commercial and heavy industrial classes. It wants higher limits with the sliding scale or for it to be removed entirely.
Council will receive the budget recommendations on Nov. 25 and vote on the budget on Dec. 9.
