The city’s finance committee received an update to Saint John’s Long-Term Financial Plan.
City staff presented the update on Friday, July, 15.
The plan includes a tax reduction goal of $1.57 per $100 of assessed property value by 2032.
“We are recommending this $1.57 be maintained as it’s a critical assumption in the plan because it can drive a lot of revenue,” said Kevin Fudge, chief financial officer for the City of Saint John.
Chair of the finance committee, Councillor Gary Sullivan mentioned that the target can build confidence for residents.
“Not only who live in Saint John, and work in Saint John, and have businesses in Saint John now, but is part of the overall strategy to continue to recruit folks and their businesses to the city, I think it’s important, and I think it is serving us well.”
Councillor Greg Norton, who sits on the committee believes the reduction sends a strong message.
“That the City of Saint John as it relates to City Hall is getting its financial house in order, and it makes us less susceptible to criticism from those people who may have to be critical in the past where Saint John has overspent and hasn’t been able to take care of its financial house.”
“Whether or not we believe that to be true, or not, it’s a good weapon to have to fight that negative commentary,” added Norton.
Currently, the city’s tax rate is $1.71 per $100 of assessed property value, the lowest tax rate since 1998.
Other targets for the long-term financial plan include reducing the infrastructure deficit by 25 per cent over 10 years, a wage escalation policy that aligns wages and benefits with increases to overall reoccurring revenue growth, continuing to reduce debt balance by 25 per cent over 10 years, or 2.5 per cent per year, and continue to increase contributions to capital reserves by 10 per cent per year.
