Fredericton City Council adopted the city’s independently audited consolidated financial statements for 2025 during a regular meeting on April 13.
The statements reflect the city’s ongoing commitment to fiscal prudence, effective budgeting, and successful long-term planning through responsible governance.
“The audited financials provide insight into the effectiveness of the city’s internal controls and annual budgeting process” said Councillor Greg Ericson, chair of the municipal finance and corporate administration committee. “Additionally, the independent audit provides assurance that public funds are being managed responsibly, and appropriate financial practices are being followed.”
The audit was completed by city appointed auditors EY and was conducted in accordance with Public Sector Accounting Standards (PSAS), which aim to provide a complete picture of the city’s finances.
The audited financial statements differ slightly from how the city’s annual budgeting process is conducted and includes all the city's consolidated funds and entities. The audited statements include the general fund, water and sewer utility, land funds and subsidiary entities like e-Novations Comnet, Inc., Newmarket Properties Inc. (Fredericton Boyce Farmers Market), and the Fredericton Convention Centre.
2025 audit highlights include:
-
A small cash surplus from the general operating fund of 1.5 per cent, per provincial legislation surpluses are to be spent in the next available budget cycle, in this case, the 2027 budget.
-
10.2 per cent increase in revenue driven by higher property taxes from assessment growth and new construction, increased sales activity (transit, parking, recreation, utilities) and a significant increase in third-party contributions.
-
17.0 per cent increase in expenses due to increased personnel costs and increased spend on goods and services.
-
4.5 per cent increase in the infrastructure deficit primarily due to inflation of capital costs outpacing CPI. The infrastructure deficit is a calculation that represents the total cost of replacing all city owned infrastructure that is past its useful life.
-
1.5 per cent of revenue spent on debt servicing costs, a .4 per cent decrease over the previous year, and well below the city’s 8 per cent debt ceiling policy target.
The city plans to continue mitigating financial risks like inflation, extreme weather, fluctuating fuel costs, and increasing infrastructure renewal costs through long-term planning, operational strategies and results-based management.
The City of Fredericton’s audited financial statements are available online.