Budget 2016

Fredericton City Council has approved the City of Fredericton’s 2016 Budget.  The $111.7 million dollar General Fund budget comes with no tax rate increase.  $16.0 million is earmarked for the capital budget and $787,506 will be provided in grants to community groups. 

Council earlier approved a Water & Sewer Utility budget of $17.7 million, with a capital budget of $7.7 million.  While the quarterly combined water & sewer rate will remain at $1.68/m³, the quarterly service charge is being increased from $79.68 to $92.86.  The rate increase will support reinvestment in infrastructure renewal. 

Recreation fees will increase in the areas of Aquatics Workplace Standard First Aid Course and hourly beach volleyball court rentals.  Fees will also increase in Community Planning for the stamping fee associated with subdivision plans/deeds, sign permits and basic zoning letters.

“Our new governing and budgeting structure allows us to create public value and make an impact in our community,” said Coun. Grandy, chair of the City’s Finance & Administration Committee.  “We are investing in the services that the public values to make our city a better place to live and work while keeping the cost affordable.”


BUDGET 2016 HIGHLIGHTS:

  • The 2016 General Fund Budget is $111,667,186 million. This is an increase of 2.74% over last year.
  • The tax rate remains the same as 2015, and in fact, the same since 2011.
    • Inside Rate - $1.4211 per $100 of property tax assessment
    • Outside Rate - $1.0658 per $100 of property tax assessment
  • Budget revenue comes from the following areas:
    • Property tax, $97,926,370 or 87.7%
    • User charges, licences and fees, $11,912,695 or 10.7%
    • Community Funding and Equalization (Unconditional) Grant, $1,756,295 million or 1.6%
    • Federal Payment in Lieu of Taxes - $71,826
  • Fee increases will occur in the following areas:Recreation:
    • Aquatics Workplace Standard First Aid Course from $45 to $60¹
    • Hourly Beach Volleyball Court Rentals from $7.50 to $10¹
  • Community Planning:
    • Stamping fee for Subdivision Plans/Deeds from $50 to $100¹
    • Sign Permits for Panel/Sandwich Boards from $50 to $75²
    • Sign Permits for all Other Signs from $75 to $100²
    • Basic Zoning Letters from $50 to $100²
      • ¹Effective January 1, 2016
      • ²Effective March 1, 2016
  • The budget will be spent in the following service areas:
    • Public Safety - $33.1 million
    • Mobility - $20.3 million
    • Sustainable Infrastructure - $24.8 million
    • Livable Community - $16.9 million
    • Economic Vitality - $5.7 million
    • Environmental Stewardship - $5.1 million
    • Governance & Civic Engagement - $4.5 million
    • Provincial Assessment Costs - $1.3 million
      • Note: The dollar amount for the Corporate service is divided across the other results areas.
  • The 2016 capital budget for things like roads, vehicles and buildings will be $16.0 million. 
  • The breakdown by service category includes:
    • Mobility, $9.8 million;
    • Environmental Stewardship, $1.2 million;
    • Livable Community, $2.6 million;
    • Public Safety, $1.6 million;
    • and Corporate, $800,000.
  • $786,506 in Community Grants will be given to local groups.  This includes Strategic Partner Capital Grants; and Community Grants, as well as Arts, Heritage & Cultural Activity/Program Grants, Ethno & Laureate Cultural Grants, Major Events, and Sport Tourism.
  • Savings from improvement & innovations efforts totaled $643,000.
  • Property tax revenue was $97.9 million, and the tax base grew by 1.69%, with 0.76% coming from market assessment increases and 0.93% from new construction.

City Council also approved a $17.7 million Water & Sewer Utility budget for 2016.  As voted on in principle by Council in October, the water & sewer rate will remain at $0.84/m³ to $0.84/m³ for both water and sewer, for a total of $1.68/m³.  The quarterly service charge is also being increased from $39.84 to $46.43 for both water and sewer, or a quarterly total of $92.86.  The rate increase will support reinvestment in infrastructure renewal.  Fredericton’s water & sewer utility is self-funded through fees collected and offers the lowest rate in the region.  City Council adopted a Water & Sewer Long-Term Financial Plan in August 2013.

The City approved the 2016 Budget as part of a special Council-in-Committee budget meeting held on December 14, 2015.