Moncton Council Approves 2027 Budget Focused on Affordability and Community Priorities

The City of Moncton’s 2027 budget reduces the residential property tax rate while maintaining service levels and making strategic investments in key municipal services and infrastructure.  

Moncton City Council held public budget deliberations on Nov. 3 before adopting the 2027 budget on Nov. 5. The residential property tax rate will decrease by 8 cents, from $1.3614 to $1.2779 per $100 of assessed value. Despite affordability pressures and volatile economic conditions, the City remains in a strong financial position to address strategic priorities while limiting the impact on taxpayers. Although the assessment base increased by more than 11%, the reduced tax rate means most residential property owners will see an average tax increase of approximately 3.25%.

Since 2021, the City has reduced its residential property tax rate by approximately 37 cents per $100 of assessment.

The City also chose not to adopt the provincial stabilizer rate for residential properties. Under the proposed stabilizer, approximately 90% of residential properties would have seen a tax increase of 5.40%, which the City felt would place too much additional financial pressure on residents. The City's proposed rate results in a more moderate increase for most residential property owners while accounting for the City's own operating costs and financial pressures.  

“The priority throughout this budget process was to manage financial pressures while protecting taxpayers, maintaining the services residents rely on and aligning our financial resources with the new Council’s strategic priorities,” says Jacques Doucet, general manager of finance services and chief financial officer. “Despite rising assessments and ongoing operating costs, we were able to reduce the residential tax rate through careful financial planning and responsible spending.”

The 2027 budget includes significant investments in public safety, including six new police officers, four RCMP support staff, 10 firefighters, and four community safety officers, while also supporting affordable housing and the implementation of the Homelessness Action Plan through two new full-time positions. Further investments support public transit, parks, recreation, municipal facilities and essential infrastructure.  

“This budget focuses on what matters most to our residents: keeping our community safe, managing growth and strengthening essential services such as public transit,” says Moncton Mayor Shawn Crossman. “Public safety remains a top priority, and these investments will strengthen our police, fire and community safety services while ensuring Moncton continues to be a great place to live, work and raise a family.”

The budget is made up of three separate components: the operating budget, the utility operating budget, and the capital budget.

2027 Operating Budget: $253 million

The operating budget funds the day-to-day programs, services, and operations that residents rely on.

Highlights include:

• An 8-cent reduction in the residential property tax rate to $1.2779 per $100 of assessment.
• A reduction in the municipal portion of the property tax rate for Moncton Local Service District residents to $0.5551 per $100 of assessment.
• A non-residential (commercial) property tax rate of $2.2571 per $100 of assessment.
• A projected debt ratio of 10 per cent by the end of 2026, well below the 20 per cent limit set by the Municipal Capital Borrowing Board. General operating fund debt is projected at $138.3 million.
• Approximately $11 million in grants to local organizations and entities.

2027 Utility Operating Budget: $49.3 million

The utility operating budget supports the delivery and maintenance of high-quality water and wastewater services, while managing key challenges such as blue-green algae mitigation, recapitalization needs, and future capital project planning.

Highlights include:

• Continued planning for the installation of a powdered activated carbon (PAC) system and ozone treatment to support cyanobacteria mitigation.
• Utility rate adjustments reflecting growth in multi-unit residential and commercial properties.
• An annual water and wastewater charge of $1,166 for an average household using 272 cubic metres per year, an increase of 2.46 per cent over 2026. This amount includes $210 collected by TransAqua for wastewater treatment.
• Increases of approximately 1.61 per cent to 2.49 per cent for commercial customers, depending on annual consumption and service line size.
• An additional $1.3 million invested in water and wastewater services, including two new positions and enhanced watershed safety and security measures.

2027 Capital Budget: $94.6 million

The capital budget funds the construction, renewal, and rehabilitation of municipal infrastructure and City-owned assets.

Major investments include:

• $35 million for road and street improvements and transportation projects.
• $17.2 million to support the renewal, replacement, and upgrading of water and wastewater infrastructure.
• $15.4 million for Codiac Transpo, including the acquisition of new buses to support the growth strategy.  
• $8.5 million for parks, recreation, culture, the Magnetic Hill Zoo, and tourism.
• $6.5 million for storm sewer infrastructure.
• $6.4 million for buildings, grounds, and equipment maintenance, renewal, and upgrades.
• $2.9 million for economic development and venues.
• $1.9 million for protective services.

To manage debt responsibly, $20.8 million from the operating budgets will be allocated to support capital and utility projects and will reduce the need for additional borrowing. The City will also continue to pursue external funding opportunities and leverage programs offered by other levels of government and third parties.

Information

Communications, City of Moncton
communications [at] moncton.ca (communications[at]moncton[dot]ca)