The city of Saint John is facing the stark reality of a multi-million-dollar shortfall heading into next year’s budget. Common Council is expected to discuss the situation at its next open meeting on Tuesday.
A report by city staff is projecting a $4.4-million shortfall heading into 2018, with the budget required by law to be balanced. A couple of scenarios are to blame. A declining population means fewer grant dollars from the province, on top of the Gallant government’s decision to freeze property tax assessments next year.
Coun. David Merrithew chairs the finance committee. He says the city has been nibbling away at services for a number of years.
“We’ve cut services, cut services, cut services,” said Merrithew. It can’t continue. There’s a tipping point and we’re at it.”
Saint John has the highest tax rate in New Brunswick. It has been held steady for several years and an increase is not something said to be popular around the council table.
“We haven’t had any increase in revenue for years like for eight, 10 years,” said Deputy Mayor Shirley McAlary. “Everything else is going up and out — citizens are no different from anyone else. They’d like to have new things. They want their streets done well and nobody can blame them for that.”
Merrithew wants to hear more from the people themselves. “If you want splash pads over your streets being paved and your protective services being cut, tell me if that’s what you really want,” he said. “I don’t think it’s right.”
The report recommends a long-term financial strategy be adopted as opposed to making dramatic moves with major cuts in 2018.
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