A first look at the 2025 draft budget for Saint John council’s finance committee.
City staff presented a high-level overview of the proposed budget at Wednesday’s meeting.
But what remains uncertain is what the tax rate will be and what service enhancements residents will see.
Comptroller Craig Lavigne said staff are still waiting for final numbers from the provincial government.
“Staff will be back to the finance committee on November 20th with a final draft with our updated tax base numbers along with various service enhancements for consideration,” Lavigne told committee members.
Lavigne said the current draft budget is set at just over $194.1 million, an increase of 3.3 per cent over the $187.8-million budget in 2024.
The balanced draft assumes a property tax increase of 4.5 per cent, a $1-million cut to the unconditional grant and $2.7 million through the federal Housing Accelerator Fund.
Service areas have submitted budgets based on current service levels in the 2024 operating budget. Much of the increase in goods and services relates to the inflationary pressures over the past year, said Lavigne.
Lavigne said additional funding and service enhancements above the baseline budget will be presented to finance committee members once property tax assessments are confirmed.
“As presented, the city needs 4.25 per cent tax base growth in order to balance and we’ll need higher than that obviously to consider further enhancements,” he added.
Coun. Paula Radwan said she is anxious to see what the provincial property tax assessments will show.
“Just so that staff knows, my general feeling is I’m mostly interested in not putting a heavy tax burden onto residents. Tax reforms could certainly help that with all of the increases that we’re feeling,” said Radwan.
Committee members also got a look at the first draft of the utility budget for 2025.
City staff are proposing to hold the line on residential water rates for the seventh straight year at $1,428.
Commercial potable customers would also see their rates stay the same next year under the proposed budget.
Both budgets will come back to the finance committee and council later this fall.
