Municipal organization seeks fiscal reform out of upcoming N.B. budget priorities

The Union of Municipalities of New Brunswick has some asks for the provincial government in its upcoming budget season, doubling down on the need for fiscal reform.

It has been nearly two years since the Higgs government reduced the number of municipalities, amalgamating several, and downloading more responsibilities onto those organizations.

But it didn’t come with the necessary financial reform needed to make the changes work, according to UMNB.

A financial summit scheduled for September 2023 was cancelled abruptly and has not been rescheduled, with the government saying it was waiting on a report from several economists.

“There was the report that had a third of municipalities facing financial difficulties, you know, that problem isn’t going to go away unless we start supporting those communities,” said UMNB executive director Dan Murphy.

In a media release, the union asked for the full transfer of the property tax collected. It wants the government to sustain the community funding and equalization grants and reverse the scheduled 20 per cent reduction in those funding sources.

The third ask was to allocate the additional $3.6 million received by the Regional Service Support fund in 2023 back into the municipalities.

It wants the government to create a climate-resilient municipal infrastructure fund with a specialized budget to help municipalities deal with the growing risk of climate change.

There was also an ask for the provincial sales tax for multi-unit residential construction to be removed for two years, among some other things.

“Our ask around fiscal reform isn’t necessarily for money this year but to start laying out that envelope for future years,” he said in an interview Friday.

He said a roadmap is essential to municipalities being able to plan the financial future and viability of projects and the resident tax rate.

“For us, we want to see the detailed process of how we get there, the deadlines, and you know a clear path so municipalities know how to be involved in the process and how to make suggestions to ensure we create the best possible fiscal situation,” Murphy said.

In a statement, the department confirmed the financial summit had not been rescheduled. With a looming election, Murphy said it remains to be seen whether enough can be achieved before the deadline of Jan. 1, 2025.

“Work on this phase of local governance reform is ongoing, including a more comprehensive path forward,” the statement went on to say.