2016 surplus saves 2018 budget for City of Fredericton

Fredericton city council will table a balanced budget for 2018 on Dec. 11, and one councillor says it would have been a much more difficult feat if it weren't for a $3.5 millionsurplus on the books at the end of 2016.

"It was important that we didn't spend those dollars in 2016 because as it turned out we had some real challenges," said Coun. Dan Keenan, vice chair of the finance and administration committee.

"As a result we are able to provide the same services for the city and improve them without a tax increase."

There's an issue there, and if we don't get that addressed going into the next year, we're going to have a real problem next year.- CouncillorDan Keenan

The biggest challenge in the budget process was the property assessment freeze from the provincial government, which means less tax revenue for Fredericton.

To help balance the budget, the city found savings of $600,000 throughout different departments. Some came from energy, some from staffing changes in engineering, and some from a vacancy due to retirement that wasn't filled.

But if it wasn't for the surplus, the city's financial picture would be very different.

"We're moving ahead with the implementation of our Garrison District plan, we're moving ahead with our all-wheeled sports plaza... and the Bill Thorpe Walking Bridge," said Keenan.

"Those arethings that we would have a very hard time to do if that weren't there."

Challenges to come

Though the budget has been balanced for 2018, Keenan saidthe city can't relax.

"There's an issue there, and if we don't get that addressed going into the next year, we're going to have a real problem next year because that $3.5 million of surplus is a one-time thing, so next year, we have to find that," said Keenan.

The budget was approved at the council-in-committee meeting on Friday night, but must be approved atthe council meeting on Dec. 11.