Fredericton City Council has adopted a 2025 Budget of $180.2 million that accounts for inflation while continuing to deliver and enhance services to all residents living in a growing city.
For a fourth year in a row, Fredericton City Council has reduced the inside property tax rate. The reduction of two cents per $100 of assessment will apply to approximately 90 per cent of city households and local businesses. This totals a cumulative property tax reduction of 12.25 cents over the past four years for these residents.
For those households on the outside/annexed tax rate, an increase of five cents per $100 of assessment has been approved in line with the rate strategy adopted in the 2024 budget.
This increase is based on a new Property Tax Rate Alignment Strategy, which reflects the fact that these households have access to most programs and services as those paying the inside rate. Tax increases for newly annexed households was outlined as part of Local Governance Reform.
The City’s 2025 budget will permit existing programs and services to continue while still allowing for significant investments in public safety programs like the Community Safety Services Unit, additional funding for public safety cameras, and design work for a new fire station.
It will also provide funds to support street and infrastructure renewal projects, a new roundabout at Prospect Street and Patience Lane and landscaping the centre islands of roundabouts, as well as increased maintenance to sidewalks, and south core flood resilience. It will also look at new outdoor sports courts and the conceptual design for a new ballfield complex on the city’s north side, and park plan implementation.
Additional funds will go to consider new levels of transit service related to half hour and on-demand service. It also includes the Nashwaak Walking Bridge deck replacement, improvements to the Old Burial Ground and improvements to playground infrastructure.
A capital budget of $30.3M has been approved. A total of $3.6M in grants and contributions to community organizations have been approved, including $860,000 in Community Grants to support strategic partners, community efforts, and a new category related to climate change action. A separate Water & Sewer Utility Budget of $24.5 million was also approved.
BUDGET HIGHLIGHTS
Tax Rates:
- Inside Property Tax Rate. The inside tax rate will drop from $1.3286 to $1.3086 per $100 of assessment. This affects approximately 90 per cent of households.
- Outside / Annexed Property Tax Rate.
- The outside tax rate will increase from $1.1065 to $1.1565
- Saint Mary’s will increase from $0.5659 to $0.6159 per $100 of assessment.
- Douglas, Pepper Creek and Estey’s Bridge will increase from $0.6786 to $0.7286 per $100 of assessment.
- Lakeside Estates will increase from $0.6362 to $0.6862 per $100 of assessment.
- For economic development reasons, there will be no increase in the Lincoln area of Fredericton, which remains at $0.5042 per $100 of assessment. The Fredericton International Airport is the main property located in this area.
- NOTE: residential properties in the annexed areas will pay an additional tax rate of $0.4115 to the province for road maintenance.
- The outside tax rate will increase from $1.1065 to $1.1565
Where the Money Comes From (Summary of Revenue):
- Property Tax: $156.3 million
- User charges, licences, fees, and other: $19.9 million
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Other: $4 million
Total Revenue: $180.2 million
Where the Money Goes (Summary of Expenses by Program Area):
- Public Safety: $56 million
- Sustainable Infrastructure: $38.9 million
- Mobility: $20.8 million
- Livable Community: $21.5 million
- Economic Vitality: $8.8 million
- Governance & Civic Engagement: 6.6 million
- Environmental Stewardship: $5.4 million
Fee Increases:
The following transit fares and parking rates come into effect on January 1, 2025:
- Senior Annual Pass increases from $60.00 to $65.00 per year.
- Charter Services will increase from $130.00 to $150.00 per hour
The following parking rates will come into effect on January 1, 2025:
- Annual residential parking permits will increase from $24.00 to $30.00 per year
- Sidewalk café permits will increase from $500.00 to $750.00 per parking spot per season
The following parking rates will come into effect on April 1, 2025:
- Four hour meters will increase from $1.50 to $2.00 per hour
- York Lot, Frederick’s Square Garage and East End Garage hourly rate will increase from $1.25 to $1.50 per hour
- York Lot, Officers’ Square Lot and Frederick’s Square Garage monthly fee will increase from $120.00 per month to $130.00 per month
- East End Garage daily maximum will increase from $15.00 to $16.50 per day
- East End monthly fee will increase from $130.00 to $140.00 per month
Capital Budget:
The total 2025 Capital Budget is $30.3 million. This includes $17,251,000 for renewal/rebuild efforts, $1,798,500 for new projects, $2,885,000 for non-tangible assets, and $2,500,000 to support growth. In addition, $5,816,000 has been set aside for one-time debt servicing costs.
Water & Sewer Utility:
The 2025 Budget for the City of Fredericton Water & Sewer Utility will be $24.5 million. The operating budget will be $13,169,740, with $11,315,777 being spent on capital projects.
The Utility is funded separately from the City’s general fund, deriving all its revenue from rates charged and funding received from other levels of government.
Water and sewer rates will go up in 2025. Effective with the second quarterly billing in 2025, the following will apply:
- the quarterly service charge will increase from $67.50 to $72.30 for each of water and sewer, plus a monthly meter rental charge.
- the commodity charge per cubic meter will increase from $1.00 to $1.02 for each of water and sewer, and
- the quarterly flat rate commodity charge will increase from $74.76 to $82.25 for each of water and sewer
- Bulk water rate will increase from $2.47 t0 $2.51 per cubic meter
- The quarterly meter rental rates will also be increasing to reflect the cost of meters and varies by meter size. For the majority of users (residential) the rate will increase from $2.00 to $2.15 per quarter.
The typical Fredericton household will pay $2.70 daily for safe, secure, and reliable water along with environmentally sound wastewater treatment.
View the 2025 Budget Infographic (PDF)