Moncton council approves 2027 budget focused on affordability

Most Moncton homeowners are expected to pay more in property taxes next year despite a reduction in the city’s residential property tax rate.

Moncton City Council approved its 2027 budget Nov. 5, lowering the residential property tax rate by eight cents to $1.2779 per $100 of assessed value.

However, the city explains that rising property assessments mean most residential property owners will still see an average tax increase of about 3.25 per cent.

The city says the assessment base increased by more than 11 per cent.

The budget states the city remains in a strong financial position despite affordability pressures and broader economic uncertainty.

The city also chose not to adopt the province’s proposed stabilizer rate for residential properties.

About 90 per cent of residential properties would have seen a 5.40 per cent tax increase under that model, according to the city’s budget.

“The priority throughout this budget process was to manage financial pressures while protecting taxpayers, maintaining the services residents rely on and aligning our financial resources with the new Council’s strategic priorities,” Jacques Doucet, the city’s general manager of finance services and chief financial officer, said in a release.

“Despite rising assessments and ongoing operating costs, we were able to reduce the residential tax rate through careful financial planning and responsible spending.”

The budget includes investments in public safety, including six new police officers, four RCMP support staff, 10 firefighters and four community safety officers.

Funding also supports two new full-time positions to advance affordable housing efforts and implement the Homelessness Action Plan.

“This budget focuses on what matters most to our residents: keeping our community safe, managing growth and strengthening essential services such as public transit,” Mayor Shawn Crossman said.

“Public safety remains a top priority, and these investments will strengthen our police, fire and community safety services while ensuring Moncton continues to be a great place to live, work and raise a family.”

The city’s 2027 operating budget totals $253 million and will fund day-to-day municipal programs and services.

It also includes about $11 million in grants to local organizations and entities.

Moncton’s utility operating budget is set at $49.3 million.

The budget includes an additional $1.3 million for water and wastewater services, continued planning for cyanobacteria mitigation measures and an annual water and wastewater charge of $1,166 for the average household, a 2.46 per cent increase from 2026.

The capital budget totals $94.6 million.

Major projects include $35 million for road and street improvements and transportation projects, $17.2 million for water and wastewater infrastructure upgrades, and $15.4 million for Codiac Transpo, including the purchase of new buses.

To help manage debt, the city says $20.8 million from operating budgets will be used to support capital and utility projects, reducing the need for additional borrowing.

The city’s debt ratio is projected to be 10 per cent by the end of 2026, well below the 20 per cent limit established by the Municipal Capital Borrowing Board.

Since 2021, the city says it has reduced its residential property tax rate by about 37 cents per $100 of assessment.