Fredericton (August 21, 2007) - The City of Fredericton and the Village of New Maryland have reached a tentative deal on a new 20-year Shared Recreation Services Agreement.
New Maryland will contribute the equivalent of four cents on their tax rate to the City of Fredericton as its fair share of the cost of recreational services provided by the City. In return, the village's residents will have access to all the City's current recreational facilities and will be exempt from a non-resident user fee charged for any sport, including the new $680 ice-sport user fee due to come into effect next month.
The agreement in principle was negotiated by the City's Committee Partnerships Committee, chaired by Councillor Dan Keenan. It is similar to tentative deals reached earlier this year with most of the unincorporated areas surrounding the City, including the Douglas, Esteys Bridge, Hanwell, Kingsclear, Maugerville, New Maryland, Noonan and St. Mary's Local Service Districts. The Province of New Brunswick is currently finalizing the LSD agreements before they are presented to City Council for formal approval. The deal with the LSDs calls for a contribution equivalent to a maximum of three cents on the tax rate in those rural communities.
"This agreement is a win-win situation for all involved, "said Mayor Brad Woodside. "It has been two years in the making but we finally have a deal that's fair, affordable and user-friendly. The real winners will be all the children in the Greater Fredericton community who will now have access to our facilities without a user fee."
"We think this is an equitable arrangement for the financial sharing of the costs of regional recreation services," said New Maryland Mayor Frank Dunn. "We are pleased to enter into this innovative, mutually beneficial relationship which can serve as a model for other municipalities throughout the province."
Approximately 40 per cent of the total users of Fredericton's recreational facilities reside outside the municipality. As non-residents, they do not pay City taxes, placing the financial burden of their construction and upkeep entirely on the shoulders of Fredericton residents through their property taxes.
Based on the current tax base in New Maryland, the village will contribute about $105,000 per year or about $45 per year per household. As assessments rise in coming years, the village's contribution will also increase. The City estimates it will receive about $3.5 million from new Maryland over the 20-year life of the agreement.
The agreement also calls for creation of a Recreation Advisory Committee. The committee will provide a forum for communication between the City and surrounding communities and will oversee implementation of the agreement and make adjustments as necessary.
"We now have agreements in place with the Village of New Maryland and the Local Service Districts which cover about 90 per cent of the non-resident users of the City's recreational facilities," added Coun. Keenan. "By working together as the greater Fredericton Region we can provide better service to all our residents."
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Contact: John White, Communications, City of Fredericton, 506-460-2227.