Moncton sheds 19 jobs amid 'serious' financial pressures

Moncton is cutting 19 full-time positions within city hall in the next two years as it continues to battle financial pressures.

Jacques Dub, Monctons city manager, sent around a memo on Nov. 28 that outlined changes to the city's executive management structure.

Dub also said an internal committee, which had been tasked to find 25 full-time positions to cut over a two-year period, had reported back with its own recommendation.

In its final report, the committee identified 19 full-time positions to be reduced during the next two fiscal years, the memo said.

All positions will be eliminated through attrition, taking advantage of a number of retirements over the next two years.

Dub statement reminded staff that Moncton is facing serious financial challenges in the foreseeable future.

The city manager pointed to a reduction in equalization funds the city receives from the provincial government.

On Monday night, John Martin, the citys chief financial officer, told city council that there are still a number of challenges facing Moncton.

He said the $145-million operational budget is balanced, but it is coming with the recommendation to withdraw $1.2 million from reserves to help balance the budget.

The financial challenges raised by city staff, such as Dub and Martin, are compounded by an economy that has been cooling off.

Housing market slowing down

The housing market, in particular, has slowed down in recent years.

Not only are fewer houses being built in Moncton, the revenue from assessments is also not growing as fast as in previous years.

"The continued downward trend in our assessment growth is also a concern.We've come through a real growth period over the past 10 years or so and the city has benefited greatly from this growth, Martin said.

As we've predicted this growth is slowing and will probably continue to slow over the next few years.Council must be aware of this trend and ensure that decisions made are made with this knowledge in order to maintain our financial stability while continuing with the growth and development of the city."

Monctons decision to eliminate jobs at city hall and borrow from its reserves comes as city politicians are also looking at a number of new major capital projects.

The city is embarking on a $107-million future downtown sports and entertainment centre and it is interested in building a $42-million police station, along with a new fire station, a recreation centre in the northwest part of the city and it wants to repurpose the Moncton Coliseum

Moncton has the second highest debt of any city in New Brunswick.

Its outstanding debt as of Jan. 1, 2012, was $137.2 million compared to Saint Johns $179,6 million, Dieppes $91 million, Edmundstons $60.1 million and Frederictons $56.8 million.