City 2022 Budget resets municipality’s budget baseline and reduces the property tax rate

Fredericton City Council has approved the City’s 2022 Budget, which resets Fredericton’s budget baseline to better deliver municipal operations and reduces the property tax rate.

The $135.1 million budget will allow the City to deliver the same service level, cover inflationary costs and wage increases, address structural gaps created over the past few years, adjust budget lines to reflect a growing city, fully fund its Capital budget, and mitigate impacts resulting from COVID-19 forecasts.

The City will also reduce the tax rate by 2.25 cents. As a result, the 2022 inside tax rate will drop from $1.4311 per $100 assessment to $1.4086. The outside rate will be lowered from $1.0733 per $100 assessment to $1.0565.

“This budget sets a new foundation for the City of Fredericton to better serve our residents and help us succeed over the coming years as we continue to grow,” said Coun. Henri Mallet, Chair of the City’s Municipal Finance and Corporate Administration Committee.

Budget Highlights

  • The $135,102,064 million budget covers the City’s operating budget ($104,367,321), capital budget ($25,072,615) and debt servicing budget ($5,662,128). 
  • Revenues include $118,873,040 from property tax, $11,464,437 from non-tax revenue, like user charges, fees, and licenses, $2,783,002 carried forward as a second previous surplus, $1,967,081 from the province’s Community Funding and Equalization Grant, as well as $14,504 from the Federal Government in lieu of taxes.
  • Property assessments increased by 9.21 per cent (one per cent from new construction and 8.21 per cent from increased market assessments, resulting in part to very strong residential sales).
  • The average assessed value of a home in Fredericton is $252,464 per house.
  • Where Your Tax Dollars Go
    • Public Safety - $40,454,647
    • Mobility - $18,393,196
    • Livable Community - $14,995,050
    • Economic Vitality - $7,504,939
    • Governance & Civic Engagement - $5,357,307
    • Environmental Stewardship - $5,236,50
    • Sustainable Infrastructure - $30,050,342
  • $802,500 will be provided in grants to community groups in 2022.

Capital Budget

The City will return to fully funding its Capital Budget as per the municipality’s Long-Term Financial Plan.  The Plan is designed to make the right investments, at the right time in Capital renewal and new construction. 

The total 2022 Capital Budget is $25,072,615. This includes $15,538,010 for renewal efforts, $1,883,851 for new projects, $2,853,700 for non-tangible assets, and $4,797,054 for one-time debt servicing costs.

The City owns $879 million worth of assets; an investment of $33,866 per household.  This includes roadways and related assets, buildings and municipal facilities, machinery and equipment, stormwater management systems, outdoor sport and recreation assets, and sidewalks.

Water and Sewer Utility Budget

There continued to be a significant reduction in water consumption in Fredericton in 2021. This has created a shortfall of revenue for the Utility in 2022.  As a result, and with expenses continuing to rise, the City’s Water & Utility will continue to follow its Long-Term Financial Plan and raise water & sewer rates.

Effective with the second quarter billing in 2022, the combined water and sewer rate will rise from $1.86/m3 to $1.94/m3. The quarterly service charge will raise from $117.20 to $123.80.

The average house in Fredericton pays $2.39 daily for safe, secure and reliable water, as well as environmentally sound treatment of wastewater. The budget changes mean the average household will pay $31.50 more annually for water & sewer services starting in 2022.

The total Water & Sewer Budget is $23,182,932 with $11,463,739 going towards Capital projects.

As per provincial legislation, Fredericton’s water and sewer utility is self-funded, deriving all its revenue from rates charged and government infrastructure grants. 


For complete details on the City’s 2022 Budget, visit Fredericton.ca and search Budget 2022.