Most residential property owners will see a seven-cent property tax rate decrease
Fredericton City Council has formally approved the City of Fredericton’s $152,881,318 operating budget for 2023.
The budget addresses inflationary needs being faced by the City, including increased gas and tender prices. It allows for core programs and services to continue and expand where necessary. There are investments in public safety, including a community safety unit, as well as affordable housing and environmental initiatives. The budget allows for a fully funded Capital program that will see road surfaces and underground pipes replaced in a timely fashion, all in support of a growing city.
Most current residential property owners will see a seven-cent decrease in their property tax rate, from $1.4086 to $1.3386 per 100 of assessment. The outside rate will remain at $1.0565. New residents joining the city on January 1 will see a five-cent tax increase to reflect their increased level of municipal services, as allowed by the Province of New Brunswick.
In addition, the budget earmarks $26,891,849 for Capital projects in 2023 and makes $643,000 available in strategic partner and community grants. There will be slight increases in sidewalk patios permits and parking fees. No rate increases will occur for the separately funded Water & Sewer Utility budget.
“Due to the changes associated with local governance reform, and all the associated back and forth, this has been a budget process like no other the City of Fredericton has seen,” said Coun. Henri Mallet, Chair of the City’s Municipal Finance & Corporate Administration.
“In addition to our usual tax rates, we now have four new tax rates associated with areas becoming part of the city in 2023, as well as a new way of calculating the tax rate for non-residential properties. I realize that property assessments are up, but I feel confident that we have created a budget that is fair and equitable for all our residents, while being sustainable.”
Budget Highlights
Tax Rates:
- Inside Property Tax Rate. The inside tax rate for current City residential properties owners will drop from $1.4086 to $1.3386 per $100 of assessment. This affects about 19,300 properties. (90% of total properties.)
- Outside Property Tax Rate. The outside tax rate, loosely defined as current City residential property owners not connected to water & sewer services, will remain at $1.0565 per $100 of assessment. This affects 650 properties (260 homes). (3% of total properties)
- Property Tax Rates for Areas to be Annexed. The new areas being annexed to the City on January 1, 2023, come with four different tax rates. While the province will continue to take care of roads in these areas and the RCMP will continue to provide policing services, these new residents will now receive most of their services from the City of Fredericton. All property owners in the newly annexed areas will experience a five-cent tax increase per $100 of assessment. This affects about 1,500 homes. (7% of total properties.) The following property tax rates apply:
- Saint Mary’s will increase from $0.4659 to $0.5159 per $100 of assessment.
- Douglas, Pepper Creek and Estey’s Bridge will increase from $0.5786 to $0.6286 per $100 of assessment.
- Lakeside Estates will increase from $0.5362 to $0.5862 per $100 of assessment.
- Lincoln will increase from $0.4542 to 0.5042 per $100 of assessment.
- 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.
- Non-Residential Tax Rate. The Government of New Brunswick has announced a decrease in core funding to municipalities over three years. To offset the loss of revenue to municipalities, they have given local governments the ability to apply a multiplier of between 1.4 to 1.7 percent to non-residential properties, excluding rental housing. For 2023, the City of Fredericton will apply a 1.7 per cent multiplier to the inside rate of $1.3386 for a total of $2.2756 per $100 of assessment. The Province will decrease their non-residential rate by 22 cents and will continue to collect $1.856 per $100 of assessment on non-residential properties.
Where the Money Comes From (Summary of Revenue):
- Property Tax: $135,680,565
- Community Grant – Government of NB: $1,610,022
- User charges, licenses, fees, and other: $15,590,731
- Total: $152,881,318
Where the Money Goes (Summary of Expenses by Program Area):
- Public Safety: $47,968,814
- Sustainable Infrastructure: $34,592,246
- Mobility: $19,236,298
- Livable Community: $17,573,231
- Economic Vitality: $7,203,544
- Governance & Civic Engagement: $5,995,719
- Environmental Stewardship: $5,889,986
Fee Increases:
- The sidewalk rental occupancy rate for patio space will increase from $422/season to $500/season effective January 1, 2023.
- Effective July 1, 2023, the following parking fees will change:
- The half hour parking meter rate will increase from $1.00/half hour to $1.50/half hour.
- The one hour and two-hour parking meter rates will increase from $1.75/hour to $2.00/hour.
- The four-hour parking meter rate will increase from $1.00/hour to $1.50/hour.
- The parking lot rates will increase from $1.75/hour to $2.00/hour.
- The hourly parking rate for parking garages will increase from $1.00/hour to $1.25/hour.
- Note: The maximum time permitted to park at The Tannery lot will increase from 2 hours to 3 hours effective January 1, 2023.
Water & Sewer Utility:
No rate increases will occur for the separately funded City of Fredericton Water & Sewer Utility budget. The combined Water & Sewer Rate for 2023 will remain at $1.94/m3, while the Quarterly Service Charge will remain at $123.80. The Utility, whose operating budget will be $23,671,040, will spend $11,820,935 on Capital projects in 2023.