Council passed the 2020 Operating budget, and also approved a new long-term financial plan. (Danielle McCreadie)
The city has adopted its budget for 2020, setting them up for what is going to be a year of “transition” and restructuring.
The city’s $166.5-million operating budget includes a tax rate of $1.785, which has remained unchanged for the past 12 years.
City Manager John Collin says the budget is anything but status quo.
“2020 is a budget whereby we will transition to and ensure that by the end of the year, we are well poised to address the entirety of the deficit in 2021 and 2022, and that’s why we are using the term it is a transitional budget,” he said during Monday night’s council meeting.
It’s hoped the budget will help prepare the city to deal with its $10-million structural deficit in 2021.
Restructuring and service cut decisions will continue to be made until March of 2020.
The city has also adopted its first long-term financial plan which, if followed properly over the next 10 years, could reduce the tax rate to $1.50.
The “transformational” plan is being described as a shift in how the city manages its finances.
The plan outlines eight steps to keep the city focused and diligent about its finances: eliminate debt, reduce debt levels each year, fund reserves, follow financial policies, facilitate provincial reforms, focus on growth, diminish infrastructure debt, and monitor progress.
Staff says council has already begun the process, and a number of policies have already been implemented.
Mayor Don Darling says he believes Saint John is one of few municipalities in Atlantic Canada to adopt such a plan.
