Council adopts budget that supports residents living in a growing city

City Hall

Fredericton City Council has adopted a 2024 Budget of $168.2M that accounts for inflation while continuing to deliver and enhance services to all residents living in a growing city.

For the third year in a row, Fredericton City Council has reduced the inside property tax rate. The reduction of one cent per $100 of assessment will apply to 88 per cent of city households and all local businesses. This totals a cumulative property tax reduction for of 10.25 cents over the past three years for these residents.

For those 12 per cent of households on the outside / annexed tax rate, an increase of five cents per $100 of assessment has been approved.

This increase is based on a new Property Tax Rate Alignment Strategy, which reflects the fact that these households have access to almost all the same programs and services as those paying the inside rate. Tax increases for newly annexed households was outlined as part of Local Governance Reform.

The $168,217,884 budget will permit existing programs and services to continue while allowing for Sunday transit service, new police officers and firefighters, one new building inspector, more community safety officers, and funds to acquire and service land for affordable housing.

It will also provide funds to support anti-racism and social inclusion efforts, initiatives at the Fredericton Botanic Garden, losses experienced by the Harvest Music Festival due to last year’s Post Tropical Storm Lee, and increased efforts related to recycling and composting in the City.

Additional funds will go to support the University of New Brunswick’s efforts to redevelop the old Justice Building into a new Law School, operational funding for programming in Officers’ Square, enhancements to the public realm in Downtown Fredericton and along Main Street, as well as heritage planning.

A capital construction budget of $28.3M has been approved. A total of $3.5M in grants and contributions to community organizations have been approved, including $643,000 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 $23.4 was also approved.


Tax Rates:

  • Inside Property Tax Rate. The inside tax rate will drop from $1.3386 to $1.3286 per $100 of assessment. This affects 88% of households.
  • Outside / Annexed Property Tax Rate.
    • The outside tax rate will increase from $1.0565 to $1.1065.
    • Saint Mary’s will increase from $0.5159 to $0.5659 per $100 of assessment.
    • Douglas, Pepper Creek and Estey’s Bridge will increase from $0.6286 to $0.6786 per $100 of assessment.
    • Lakeside Estates will increase from $0.5862 to $0.6362 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 only property located in this area. 
    • NOTE: All these areas will pay an additional tax rate of $0.4115 to the province for road maintenance. Some of the tax collected by the City will transfer back to the Province for garbage and recycling, as well as RCMP contract.

Where the Money Comes From (Summary of Revenue):

  • Property Tax: $148,212,886
  • User charges, licences, fees, and other: $17,504,981
  • Provincial Community Fund / Equalization Grant: $1,207,516
  • Federal Payment in Lieu of Taxes: $4,466
  • Second Previous Years Surplus (Carried forward from 2022): $1,288,374.

Total Revenue: $168,218,223

Where the Money Goes (Summary of Expenses by Program Area):

  • Public Safety: $52,514,191
  • Sustainable Infrastructure: $36,645,808
  • Mobility: $19,849,804
  • Livable Community: $19,195,790
  • Economic Vitality: $8,414,245
  • Governance & Civic Engagement: $6,351,357
  • Environmental Stewardship: $5,567,209

Fee Increases:

The following transit fares and rates come into effect on January 1, 2024:

  • Cash Fare increases from $2.75 to $3.00 per trip
  • Debit/Credit Card Fare increases from $2.75 to $3.00 per trip
  • Fixed Route 10-Ride Card increases from $2.50 to $2.75 per trip
  • Adult Monthly Pass increases from $80.00 to $85.00 per month
  • Student Monthly Pass increases from $55.00 to $60.00 per month
  • Senior Annual Pass increases from $50.00 to $60.00 per year
  • Paratransit 10-Ride Card increases from $2.50 to $2.75 per trip

The following planning and zoning fees will increase in 2024:

  • Zoning Amendment/Rezoning Fees – from $1,250.00 to $1,750.00.
  • Municipal Plan/Zoning Fees – from $1,750.00 to $2,500.00
  • Re-Approval of Subdivision - from $100.00 to $200.00
  • Subdivision (2 lots or less) - from $100.00 to $250.00
  • Subdivision (2+ lots) – from $250.00 + $25.00/lot to $250.00 + $50.00/lot
  • Panel / Sandwich Board signage – from $75.00 to $100.00
  • All other types of signage – from $100.00 to $125.00

Capital Budget:

The total 2024 Capital Budget is $28,344,195. This includes $16,805,995 for renewal/rebuild efforts, $1,627,200 for new projects, $2,141,000 for non-tangible assets, and $1,575,000 to support growth. In addition, $6,195,000 has been set aside for one-time debt servicing costs.

Water & Sewer Utility:

The 2024 Budget for the City of Fredericton Water & Sewer Utility will be $23,440,904. The operating budget will be $12,581,487, with $10,859,417 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 2024. Effective with the second quarterly billing in 2024, the following will apply:

  • the quarterly service charge will increase from $61.90 to $66.54 for each of water and sewer, plus a monthly meter rental charge.
  • the commodity charge per cubic meter will increase from $0.97 to $1.00 for each of water and sewer, and
  • the quarterly flat rate commodity charge will increase from $67.96 to $74.76 for each of water and sewer.

The typical Fredericton household will pay just $2.53 daily for safe, secure and reliable water along with environmentally sound wastewater treatment.