Saint John’s finance committee chair says the city cannot keep relying on “new deal” dollars from the province.
Council members got their first look at the proposed $159.6-million operating budget for 2019 last week.
It includes $8.9 million in revenue from the province to address the gap between its revenue and expenses; the city will also get $10.4 million in 2020.
But Coun. David Merrithew says when the three-year deal expires at the end of 2020, the city’s structural deficit could balloon to $15 million in 2021.
Merrithew gave some grim examples about what a $15-million shortfall represents for Saint John.
“What you’d have to do is take all of your snow removal, no one gets their road plowed all winter, then on top of that, increase your tax rate 10 cents,” Merrithew said.
Mayor Don Darling said a working group of city and provincial officials is working hard to find ways of addressing the shortfall and is expected to report back to the city sometime before Jan. 1, 2019.
“If we don’t get sustainable solutions, then there’ll be ugly cuts for this community,” Darling said.
Saint John has taken steps to get back on track, which includes setting money aside for a restructuring plan and starting to create a long-term financial plan.
—–
Story by Brad Perry
Twitter: @BradMPerry
Email: perry.brad@radioabl.ca
(Photo: Brad Perry/Acadia News)
Follow
