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City of Moncton will hold tax rate at $1.6497 for 2017


December 19, 2016

MONCTON – Moncton City Council resolved to formally adopt its 2017 Budget at its December 19, 2016 public Council meeting.  Residents’ tax rate will not increase in 2017 with the tax rate remaining at $1.6497 per hundred dollars of assessed value. The overall assessment growth for the City amounted to 3.72% for 2017 vs 1.70% from 2016. 

Highlights of the 2017 Operating Budget, set at $150,198,830, include:

  • Continuing to do more Capital work out of the Operating Budget (doing more on a ‘pay as you go’ basis rather than borrowing) with a total of $7.3 M to fund Capital projects out of Operating Budget. 
  • Downtown Centre – Deposit an additional $1.6 million received from the federal rebate for RCMP policing into a reserve for the proposed Downtown Centre and other future Capital projects.
  • Community funding and equalization grant - The City will lose an additional $1,800,000 of community funding and equalization grant funding from the province in 2017. The increased assessment base assisted in offsetting this decrease in the equalization grant reduction.
  • The cost of RCMP policing increased by $670,000 or 3.19% from 2016. 
  • Fiscal and debt charges will be lower by $1.3 million in 2017 as a result of the “pay as you go” philosophy, careful monitoring of capital spending and completion of debt payments from significant projects in years past.
  • Overall reserves are increased by $ 1.468 M which includes an additional $1.295 M for a reserve for future anticipated rent increases once the new RCMP facility is completed in 2019
  • Magnetic Hill Zoo – Increased funding for the operation of the Zoo including enhancements to the admission and souvenir shop experiences and expansion of the Zoo Education Centre. 
  • Through various initiatives and revenue increases, the City also carved in excess of $650,000 of costs out of the budget to cover the net impact of increased costs, reduced equalization grant funding and offsetting assessment base increase for 2017.

Highlights of the City’s $50.2 million 2017 Capital Budget include:

  • $7.3 million in total contributions from the City’s Operating Budget to help to reduce the City’s debt financing requirements. These contributions to the Capital Budget from the Operating Budget have been a strategic priority for the last several years and are helping to reduce the City’s overall borrowing requirements and debt.
  • Over $11.7 million in projects are for water and sewer infrastructure improvements and renewal.
  • Over $13.8 million in projects are for road and sidewalk construction and improvement projects.
  • Over $9.9 million in projects are for storm sewer construction and improvement.
  • $5.7 million in recreation and culture expenditures including enhancements to parks, trails, recreation master plan projects, aquatic features in parks, Centennial Beach replacement and the development of the Magnetic Hill Zoo African exhibit. 
  • Continued development of downtown, riverfront and other municipal venues with $350,000 committed towards these enhancement.
  • $5.9 million allocated towards the replacement of Codiac Transpo’s fleet with additional funds committed over the next 2 years.
  • Fire department requirements totaling $ 1.45M including a new heavy rescue truck and new breathing apparatus equipment for firefighters.   

Highlights of the $36.6 million Utility Budget (water and wastewater) include:

  • The water and wastewater utility bill for a typical household in Moncton (average household use of 272 cubic meters as defined by the Province of New Brunswick) will increase by $23 (annual) or $6.00 on a quarterly bill. These figures are based on an annual bill of $998 or quarterly bill of $249.50. This compares to a typical household utility bill in 2016 of $975 (annual) or $243.75 (quarterly).
  • Included is a $210 fee for the Greater Moncton Wastewater Commission (GMWC), which remains unchanged from 2016. This amount is to be applied for various improvements and upgrades at the Greater Moncton Wastewater facility as well as infrastructure improvements to Moncton’s water distribution system.

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Media contact:

Isabelle LeBlanc
Director, Corporate Communications
City of Moncton
506.853.3592 / isabelle.leblanc@moncton.ca