The City of Moncton operates under Capital, Utility and Operating budgets.
The 2023 budget proposal was presented to Moncton City Council in November 2022.
Municipal Budget Guide
Moncton has three separate budgets:
|General operating budget||Funds all municipal programs and services not covered by the utility and capital budgets, including parks, recreation programming, public transit, police and fire services, urban planning, and building inspection; the annual operating budget is around $180 million for 2023|
|Capital budget||Capital funds are used to build or rehabilitate city infrastructure, such as roads, storm sewer systems, buildings, and recreation facilities; the capital budget fluctuates more widely from year to year than the operating and utility budgets, but is generally between $50 and $60 million|
Utility operating budget
|Funds the provision of water and wastewater services; the annual utility budget is approximately $41 million for 2023|
All budgets are multi-year budgets to help support long-term planning. They are reviewed and adjusted each year.
- Operating and utility budgets: three-year budgets
- Capital budget: five-year budget
The budget year follows the calendar year, from Jan. 1 to Dec. 31.
Where the funds come from
- The general operating budget is funded mainly through property taxes.
- The utility budget is funded through user fees (water and wastewater billing).
- The capital budget is supported through the operating budget, borrowing, and funding from other levels of government.
Calculating property taxes
Each year the provincial government assesses the value of every property in the province. The property assessment reflects the market value of the property — the price the property would likely sell for on the open real estate market.
]Your property tax bill is calculated as follows:
- Assessed value of your property/100 x (municipal tax rate)
For example, for a home in Moncton with a value of $300,000, the tax bill for 2023 is:
- $300,000 /100 x $1.4443 = $4,333 or $361/month
The total assessment base for the City can grow in two ways:
- The value of existing properties rises
- Additional homes, businesses, and other structures are built
The City’s goal is always to manage finances responsibly and to consider the long-term consequences of fiscal decisions. As a result, it considers its tax rate carefully each year.
|Tax base||Property tax rate||Property tax rate +/-|
|2023||+ 15.4 %||$1.4443||-10.29 cents|
|2022||+ 10.9 %||$1.5472||-10.25 cents|
|2021||+ 1.7 %||$1.6497||No change|
|2020||+ 4.1 %||$1.6497||No change|
|2019||+ 3.8 %||$1.6497||No change|
The 20.5 cent reduction in the tax rate over the past two years has helped mitigate increases in tax bills for individual property owners who saw their assessments increase, while maintaining a budget that meets the needs of residents.
What do you get for your tax money?
Municipal governments receive 10 cents of every tax dollar you pay each year, including property taxes, income tax, HST, etc. In 2022, Moncton received $152 million in property taxes.
With those funds, the City of Moncton:
- builds, maintains, plows, and cleans city roads and sidewalks
- offers police and fire services
- provides drinking water
- operates public transit
- develops and delivers recreation activities
- oversees zoning (land use)
- provides waste collection, compost, and recycling services
What you get
Home assessed at $300,000
Monthly tax bill: $361
|$49||Fire and safety services|
|$53||Roads, sidewalks, and snow removal|
|$8||Solid waste collection|
|$6||Facilities and operations|
|$11||Engineering and development|
|$23||Recreation, culture, and event services|
|$361||Total tax bill/month|
Developing and implementing the budget is a year-round process. Planning for the following year’s budget begins early in the year and goes through to August. Budget development begins in earnest in the fall of each year.
Timeline for the 2023-2025 budget
|August to October 2022||The City’s Finance Department collaborated with Moncton City Council and all City departments to develop a draft budget.|
|Nov. 7. 2022||An overview of the draft budget was presented to Moncton City Council at its regular council meeting.|
|Nov. 8-9, 2022||Public budget deliberations were held in council chambers at Moncton City Hall. Each department was given the opportunity to present its budget to council.|
|Nov. 10, 2022||At the end of the budget deliberations, Moncton City Council voted on all motions presented during deliberations and the budget received final approval.|
|Jan. 1, 2023||The budget is implemented for 2023.|
|February/March 2023||The provincial government grants final approval of the operating budget and the New Brunswick Municipal Borrowing Board approves any borrowing for the capital budget.|