Saint John is proposing a three-cent tax cut next year, but one councillor says it does not go far enough.
The 2025 draft operating budget was presented to council during this week’s regular meeting.
The proposed $194.4-million budget is about $6.6 million, or 3.5 per cent, higher than 2024.
It includes a three-cent tax cut, from $1.58 per $100 of assessed value to $1.55.
City staff said the budget maintains existing service levels while adding enhancements in some areas.
Coun. Paula Radwan said while staff have done a great job of listening to council’s asks, she will be voting against the budget.
“People are being squeezed so much at the grocery store, at the gas station, I’m very worried that we could actually price people out of their homes,” said Radwan.
“We have to keep in mind this actually could put pressure on apartment rents going up.”
The councillor said in an ideal world, she would like to see the tax rates lowered by five cents.
Overall assessments in the city increased by around 6.5 per cent for 2025, according to numbers presented by staff.
About one-quarter of that growth is coming from new construction with the rest from reassessments of existing properties.
With the tax rate cut, the city expects to bring in an extra $6.4 million in property tax revenue in 2025.
But residential property owners in the city continue to shoulder the burden — around three-quarters of that total, or $4.8 million, will come from the taxes they pay.
Non-residential properties will account for $1.5 million while just $61,000 will come from heavy industry.
The city has long called on the province for more flexibility to set tax rates that would distribute rising costs equally.
Municipalities can currently use a sliding scale and set non-residential rates between 1.4 and 1.7 times the residential rate.
Saint John currently has its multiplier set at 1.7 for commercial and heavy industrial classes. It wants higher limits with the sliding scale or for it to be removed entirely.
Meanwhile, Deputy Mayor John MacKenzie said this is one of the best budgets he has ever seen during his time on council.
“Yeah, Saint John is behind in some areas. That’s because we didn’t have a very good financial past. We do have it coming now,” said MacKenzie.
Council is expected to vote on the budget during their next meeting on Dec. 9.
