Mayor Responds To AG Report On ‘New Deal’

Saint John’s mayor is responding to the auditor general’s audit into the so-called “new deal” agreement with the province.

Kim MacPherson accused the city of “leveraging” the recent provincial election to advance the three-year funding agreement.

But Mayor Don Darling said the timing had nothing to do with the election.

“The timing of our efforts reflected the city’s annual budgeting process as well as an urgent need to address our long-term sustainability issues,” said Darling.

“Sustainability remains our number one priority, independent of the timetable of provincial elections and who has or will form government.”

MacPherson also said providing funding based on the city’s anticipated deficit created an “inappropriate incentive” for the city to incur deficits.

Darling said their motivation has always been — and continues to be — reducing deficits.

“For example, in the second year of the deal, we anticipated a deficit of $8.9 million but through internal efforts, will only require $7.1 million,” he said.

Mayor Don Darling says the three-year deal was “never about the money” but about finding real municipal reform. pic.twitter.com/sm2p7XwZ1C

— Brad Perry (@BradMPerry) June 11, 2019

MacPherson also revealed Tuesday a working group report intended to bring long-term solutions to Saint John’s financial situation is still not complete.

Darling said the report, which was supposed to be released in January, is in the province’s hands and he has not been told what the delay is.

“Until the working group report, now five months late, comes back with real reform and actions, we’re going to continue holding back the potential of the city.”

Darling said the deal was “never about the money” but about finding real municipal reform for his city and cities throughout New Brunswick.

Without tax reform, Darling said the pending cuts will be “drastic” and affect nearly every service the city provides.