Moncton mulls raising property taxes in 2026 after N.B. freezes assessments, potentially creating a multimillion-dollar budget shortfall.
Tax Freeze Triggers Budget Concerns
Moncton City Council is weighing the possibility of raising property tax rates for the first time in nearly ten years after the provincial government froze property assessments, a move that could cost the city millions in expected revenue.
The freeze, introduced earlier this year by the New Brunswick government, halts growth in property assessment values—values the city has long relied on to fuel infrastructure projects and meet rising costs. Jacques Doucet, Moncton’s general manager of financial services, presented the issue at a council committee meeting on Monday, urging councillors to prepare for difficult decisions ahead.
City Faced With Three Options
Doucet outlined three potential paths: maintaining the current tax rate by cutting spending, increasing the tax rate by 2.5%, or opting for a larger 4.5% hike. Each option carries significant implications for the city’s $223.8 million operating budget.
The city’s current rate stands at $1.3614 per $100 of assessed value. Over the past four years, Moncton had cut its rate by 21 cents to offset fast-rising assessments. However, with that growth halted, Doucet said the city is now facing a shortfall of up to $13 million it had anticipated based on past trends.
Councillors Weigh Impact on Residents
Although no votes were cast, councillors discussed the impact of the options. Coun. Bryan Butler urged a steady rate, asking whether that was sustainable for one year. “Yes, it’s doable,” Doucet responded.
Coun. Charles Leger suggested a broader conversation about prioritizing spending and delaying certain investments. “Maybe we’re going to be faced with that—we have to slow down,” Leger said, emphasizing the city’s need to balance community reinvestment with fiscal caution.
Spending Cuts and Delays Under Review
Doucet acknowledged that many rising costs—such as inflation and union contracts—are locked in. As a result, cuts would likely fall on capital spending for roads, buildings, and city vehicles. Other possibilities include delaying hiring or raising transit and recreation fees.
He emphasized that funding from provincial sources, such as a $45 million capital renewal fund, remains uncertain and could further impact budget planning.
Budget Outlook Expected by Fall
Doucet plans to return to council in September with updated revenue projections and spending recommendations, following clarification on provincial funding levels.
The province, meanwhile, maintains that the assessment freeze offers relief for taxpayers. But as Doucet’s report noted, it shifts financial pressure onto municipalities like Moncton, which may now be forced to choose between raising taxes or slowing growth.
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