Saint John inks 2023 budget, increases property tax rate for businesses

The City of Saint John passed its 2022-23 budget Monday night at its common council meeting.

The budget comes with a price tag of $177,287,500, which is an increase from $164,721,858 in 2022.

Property tax rates throughout the city have also dropped, like in many other large centres throughout New Brunswick. Rates fell 9.0 cents, from $1.71 to $1.62 per $100 assessed value. The City of Saint John said this is its lowest tax rate in over two decades.

One of the report’s highlights is the increased property tax rate for the Non-Residential and Heavy Industrial classes. Previously the province had set the rate at a firm 1.5 times the residential rate, but the province left it for the municipalities in their 2023 budgets to choose between 1.4 times and 1.7 times, where the city chose the maximum.

The Saint John Chamber of Commerce said it wasn’t surprising to see the rates go up for businesses. Its CEO said rising inflation rates had shattered some businesses, and while he understands why the city had to increase the property tax multiplier, it doesn’t make it any easier for trades.

“Normally businesses don’t like that,” said David Duplisea.

“We don’t like increases in property taxes because New Brunswick already has one of the highest property taxes for businesses in Canada. Although we were not pleased to see that go up we certainly understand the reason why the city had to do that.”

Like many other municipalities, Saint John’s expenditures grew once again, this time at 7.6 per cent, which is $12 million more than in 2022. According to Mayor Donna Reardon, the city had $338 million in debt in 2018, which has since dropped to nearly $160 million.

Of the total $177 million, $142 million will come from property tax, which has risen roughly $11 million from the 2022 budget. The city also plans on receiving funds through Saint John Energy benefits, equalization and unconditional grants, and their source revenue.

It will also expense more in almost every sector for 2023, with the largest coming from public safety services and public works and transportation services.