Cuts could be coming as Saint John prepares for new 'transitional' budget
Saint John councillors were presented with a completed 2020 budget Wednesday night, which included a document that freezes the police force's allotment and gives city fire service a one per cent increase.
Overall, the $166 million budget comes in 3 percent above the 2019 numbers and holds the property tax rate at $1.785 per hundred dollars of assessed value.
But while the document suggests little change, the year 2020 has been described by city managers as a "transitional" year.
In parallel with city operations covered by the budget document, managers will be trimming programs and invoking about $5 million in what are being called "workforce adjustments."
"I want to make this crystal clear. These cuts will come in 2020," said Kevin Fudge, the city's finance commissioner.
It's all in preparation for 2021 when a unique, three-year provincial assistance package expires.
That funding, initially $22.8 million, was advanced by the previous Liberal government to help the city avert layoffs and cuts to front line services. About $8 million is expected to be used in 2020, the final year.
A list of provincial reforms are expected to bring some financial relief to the city over the next few years.
Among them are changes to labour arbitration rules, and legislation that forces outlying local service districts to help pay operating and maintenance costs for city owned, regional facilities like TD Station (formerly Harbour Station) and the Canada Games Aquatic Centre.
The city's call for provincial help followed years of stubbornly low assessment increases from home prices and new construction.
A silver lining
The 2020 assessment rate is up 1.83 per cent, less than half of the cities of Moncton and Fredericton. It's still an encouraging sign after a stretch that saw increases of less than one per cent in four of the past seven years.
Council has already passed a motion limiting any wage escalation agreements to 1.3 percent in 2020.
Under the current contract police officers have been receiving about 2.5 per cent increases annually, while firefighters have been getting 2.97 per cent increases.
The budget will reduce options in contract negotiations now getting started with most of the municipality's unions, including police, firefighters and outside workers.
City looks at cuts to programs
The city is also considering program cutbacks, deep cuts to the number of casual workers hired for the parks and recreation department and for city works.
Revenue generating proposals and fee increases are also under consideration. That includes a plan that would double monthly parking rates for motorists who live outside city limits.
Saint John Mayor Don Darling said the budget is part of a 10 year financial plan that will put the city on track financially with the potential for a tax decrease for property owners by 2028.
The budget is expected to get final council approval later this month.
