City Projecting $1.3 Million Year-End Surplus

The City of Saint John is forecasting a $1,397,032 year-end surplus for its 2021 operating budget.

Senior finance manager Craig Lavigne told the city’s finance committee Wednesday that part of this surplus comes from the cancellation of the provincial P-gap exemptions.

The exemption grandfathered assessment gaps resulting from a three per cent cap on residential assessment hikes in 2011 and 2012.

“Which resulted in just over $1 million in additional tax revenue in 2021,” said Lavigne. “The LNG tax revenue, as well as the reduction in the unconditional grant, netted us about $1.23 million.”

The city’s Growth and Community Services also saw a surplus of $604,169, which relates to additional revenue for the Dangerous Building Program, funding for the Succeed and Stay Local Immigration Program, and increased development activity.

During the presentation to the committee, Lavigne said Strategic Services was the largest reason the city saw a year-end surplus.

“I want to highlight that most of these revenues in Strategic Services are one-time revenues, and are not requiring,” he said.

“We received $3.668 million from the COVID-safe restart program, we are anticipating $1 million for the cyberattack recovery, $1.625 million for the windup of Develop SJ, $500,000 from Saint John Energy, as well as just over $368,000 for the windup of Discover SJ.”

Although there are a number of surpluses, some departments have noted deficits.

Transportation Services saw a deficit of over $720,000 mainly from the impact COVID-19 had on recreation and parking revenues.

As well, Protective Services saw a deficit of over $170,000, which is from a combination of loss of secondment revenue, delays in implementing bylaw fees, and lower than anticipated revenue from the Public Safety Communications Centre.