Cuts are coming as Saint John prepares for new 'transitional' budget - Action News
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New Brunswick

Cuts are coming as Saint John prepares for new 'transitional' budget

Saint John councillors were presented with a completed 2020 budget Wednesday night, which included adocument that freezes the police force's allotment and givescity fire service a oneper cent increase.

City councillors reviewed their 2020 budget at a meeting on Wednesday night

Saint John city councillors watch Wednesday's budget presentation. The document holds the tax rate at $1.785 (Connell Smith, CBC)

Saint John councillors were presented with a completed 2020 budget Wednesday night, which included adocument that freezes the police force's allotment and givescity fire service a oneper 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 beendescribed 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 crystalclear.These cuts will come in 2020," said Kevin Fudge,the city'sfinance 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.

Saint John police officers, firefighters and outside workers will all be in contract negotiations with the city in 2020. (CBC)

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, andlegislation 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 ofstubbornly 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 ofMoncton and Fredericton.It'sstill an encouragingsign after a stretch that saw increases of less than oneper cent in four of the past seven years.

Council has already passed a motion limitingany 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'sunions, including police, firefightersand outside workers.

City looks at cuts to programs

The city is also considering programcutbacks, deep cuts to the number of casual workers hired for theparks and recreation departmentand 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 MayorDon Darling said the budget is part of a 10year 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.