Municipalities are growing in New Brunswick with many showing double-digit increase in tax base assessments, according to provincial data.
It’s pushing several thresholds of more than a billion dollars in tax base assessment, while the province’s population blooms past 800,000.
In Grand Bay-Westfield, N.B., the tax base increased by 11.4 per cent, raising it by $62 million to $601 million.
Mayor Brittany Merrifield said while it is largely due to the annexed areas brought into the region as part of municipal reform, some is new construction.
The council approved its budget, but described the situation as fragile. Like other municipalities, it will be responsible for taking on more mandated services with the regional service commissions and it added snow removal to its town services.
She said on top of the added population and tax base growth, which she said is good, the equalizations grants have continued to be cut, leaving more of the burden on taxpayers.
“With limited growth in new construction, an increase in taxation is passed on to the existing property owners,” she said.
The town is now split into two wards. Ward 1 saw a decrease in its tax rate to 1.31 per $100 of assessment and Ward 2 saw an increase to $0.6759, or nearly seven cents.
Get breaking National news
But Merrifield said the budget is fragile, which was also described in a budget presentation to council. The total budget for the town is about $8.4 million
She said since elected, the equalization grants provided by the provincial government continue to be cut, leading to more burden on taxpayers.
The municipality’s main source of revenue is through the tax base – meaning it sets the tax rate – and the government collects it and then redistributes it, but municipalities only get a part of the pie.
It wasn’t the only municipality to see such growth,
In Shediac, the community’s tax base assessment rose 20 per cent, ballooning to $1.7 billion, up from $1.4 billion.
Riverview increased by 13.5 per cent, going from $1.9 billion to $2.66 billion.
Saint John and Fredericton grew 9.8 per cent and 10.5 per cent, respectively.
In Quispamsis, the tax base assessment growth was about 11.68 per cent, according to a presentation to council, bringing them to $2.4 billion in tax base assessment.
Mayor Libby O’Hara said growth is a good thing and may lead to a little bit more money down the road, but there is a balancing act required when services go up, but revenue does not.
Last year, council was forced to cut paving projects due to high costs.
During recent budget presentations, the town’s treasurer described the reserves as dangerously low.
“We did keep the tax rate where it was last year,” she said. “It is important that we have a health reserve. If we lose sight of maintaining our assets, then we will actually lose that asset.”
“So, keeping the tax rate low, that was our goal.”
The tax rate has been set a 2.777 cents per $100 of assessment, and council allocated money to the reserves instead of dropping the rate.
Both Merrifield and O’Hara said while the growth is positive, the old taxation system and revenue streams for municipalities place all the burden on residential property owners.
In order to provide services, and stay financial sound, most municipalities have to increase the tax rate.
They both called for tax reform despite a cancelled summit between the provincial government and the municipalities back in September.
“But having that financial or fiscal summit would have been very helpful to all communities in New Brunswick,” she said.
Comments