Fredericton slashes property tax rate by 2.25 cents, raises cost of water in 2022 budget

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Fredericton City Council has approved the City's 2022 Budget, which includes a 2.25 cent cut on the property tax rate and an increase to the cost of water.

A release states the inside tax rate will drop to $1.4086 per $100 assessment, and the outside rate will be lowered to $1.0565 per $100 of assessment.

Due to a significant reduction in water consumption, and the revenue shortfall it created, the combined water and sewer rate will be raised to $1.94 per cubic metre, and the quarterly service charge will rise to $123.80, effective with the second quarter billing in 2022.

The city says $135.1 million budget will allow it to deliver the same service level, cover inflationary costs and wage increases, address structural gaps, adjust budget lines, fully fund the capital budget, and mitigate impacts of COVID-19.

It includes $104.3 million for the operating budget, $25 million for the capital budget and more than $5 million to service debt.

The capital Budget includes $15.5 million for renewal efforts, $1.8 million for new projects, $2.8 million for non-tangible assets, and $4.7 million for one-time debt servicing costs.

$802,500 in grants to community groups in 2022.

The city says revenues include more than $118 million from property tax, more than $11 million from non-tax revenue, $2.7 million carried forward as a second previous surplus, $1.9 million from the province and $14,504 from the Federal Government.