Saint John Common Council views ‘historical’ 2021 draft budget plan

Saint John Common Council got its first look at a draft budget for 2021, regarded as a “historical” plan by one its architects.

Finance Commissioner Kevin Fudge outlined the $158 million financial blueprint for next year. It eliminates a $10 million structural deficit and, for the first time in three years, does not include financial assistance from the provincial government.

“I do believe that the 2021 draft operating budget represents a historical financial reset for the city,” Fudge told Common Council Monday.

The budget includes, for the 12th consecutive year, a tax rate of $1.785 per $100 of assessment.

Fudge said it “provides the city the most flexibility it has had in decades to mitigate unforeseen future events,” citing the COVID-19 pandemic as an example.

But the budget did not come without challenges.

More than $6 million of the $10 million deficit was found through controversial cuts to the city’s police and fire budgets, along with inside and outside workers and management staff.

Fudge said if the city enforce current financial policies, “we can put austerity behind us.”

Mayor Don Darling, who sits on the finance committee, told council the budget represents leadership and “acknowledges the challenges” officials faced in deciding on cuts while remaining focused on the task at hand.

He said it will be up to the next council to keep momentum going forward.

“And when you get cornered, whoever you are, future council,” Darling began. “You get cornered, I hope the policy keeps you from doing it but, please, when you think about reaching out and pulling the credit card out of your pocket, don’t do it. Make the tough decision.”

Councillor Gary Sullivan, another finance committee member, emphasized that by eliminating the $10 million deficit for 2021, the budget effectively dissolves another anticipated $10 million deficit in 2022, provided council adheres to its own policies.

Sullivan said the budget is an important piece of the financial puzzle for the city’s future, but it is only one piece.

“We still need to work on tax reform, unlocking Saint John Energy’s potential, arbitration reform — those really foundational pieces,” he said, adding that those elements should be topics of conversation with candidates in the upcoming New Brunswick election.

Fudge said it’s important to recognize Saint John is just “one year into a 10-year financial plan.”

“Commitment to the financial plan, commitment to taxpayer value and commitment to growth is paramount to meeting the stretch goals in the long-term financial plan,” Fudge said. “In particular to achieving the tax rate of $1.57 by the year 2030.”

Council voted unanimously to receive and file the draft budget. A budget voted is expected Aug. 31.

Fudge said final approval may not happen until November when the city gets important tax and unconditional grant information from the province.

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