City's 2022 Budget Process Kicks Off

Sound management and record-breaking development numbers mean Fredericton in good financial shape

The City of Fredericton has entered the 2022 budget process in solid financial shape. On the recommendation of staff, Council voted unanimously during its budget kick off meeting last night to approve no new tax rate increases as they enter discussions and financial planning for the coming year. 

“The City’s sound financial planning and management puts us in a position where we can continue to provide the high level and standard of service the residents of Fredericton have come to expect,” said Councillor Henri Mallet, Chair of the City’s Municipal Finance and Corporate Administration Committee.

City Treasurer Alicia Keating explained that Fredericton’s record-breaking development numbers for 2021 means the City should see a strong tax base increase and building permit revenues available in its 2022 budget.  “Of course, there continues to be a great amount of uncertainty around the long-lasting impacts of the COVID-19 pandemic. These are all variables my colleagues and I will take into consideration during the planning process,” she cautioned.

Over the next few months, City staff will hold a series of meetings with Council, working to build a comprehensive budget based on their priorities and recommendations.  Council is expected to vote on and adopt the 2022 Budget in November. 

About the City of Fredericton Budget

The City’s annual budget, much like a household budget, is an annual plan about how money is raised and spent, with most funds raised through property taxes. The City also relies on revenue from other sources, such as user fees for parking, transit, and recreation, as well as contributions from other levels of government. 

The City’s budget is divided in two types of expenses: operating and capital. The operating budget pays for the day-to-day expenses that keep the City running, such as waste and recycling pickup, snow removal services, staff wages and utility costs. The capital budget pays for assets such as community infrastructure like roads, parks and community centres that are used to support these programs and services.

The City budget also allows City Council to implement the priorities it sets for the community.

In New Brunswick, provincial legislation requires that municipalities must balance their budget every year.  Provincial legislation also requires that Fredericton’s water and sewer utility be self-funded through the rates it collects. And it is separate from the City of Fredericton’s general fund budget and property tax system.