Higher water taxes and recreation fees, stable property taxes in 2023 St. John's budget
City spending to increase by 4.3% next year
St. John's residents will pay higher water taxes and recreation fees next year but won't pay higher property taxes as the city attempts to maintain services levels in the face of soaring inflation.
While delivering the budget on Monday, Ron Ellsworth, lead councillor for finance, said city council is attempting to "hold the line" against rising costs.
"Our goal in planning this year's budget, therefore, was to maintain existing levels of service and make small, targeted investments that will stabilize the services that matter most and to support our commitments to bolstering the economy and being a sustainable organization," he said.
Provincial legislation requires municipalities to balance budgets, and the city will use $6.1 million from savings to cover its projected deficit next year. According to a city official, St. John's had a surplus of $21 million at the end of 2021.
City spending is increasing 4.3 per cent next year, from $319,603,486 in 2022 to $333,282,356.
The city projects it will spend an extra $6.5 million on contractual services, materials and supplies — most of which will go toward fuel. The city also plans to spend an extra $3.1 million on unionized employee wages, after signing four-year contracts with most unionized employees in 2022.
Recreation fees increase for 1st time since 2019
While property taxes will stay the same at 8.3 mills for residential and 26.9 for commercial, people who use city facilities will pay more in other areas.
Residents will pay $670 — up $45 — in water taxes, while commercial water usage rates will go up by 7.1 per cent. Ellsworth said all revenue from water taxes directly funds service provision.
Recreation fees will go up for the first time since 2019.
For example, the monthly cost of the after-school program at the Paul Reynolds Community Centre, with transportation, will go from $350 to $375. The weekly cost of day camp at Paul Reynolds, Kenmount Terrace, Southlands and Bowring Park will go from $125 to $150.
"These fee increases have been kept to the absolute minimum," said Ellsworth. The additional fees are projected to net $310,000 for the city.
Coun. Jill Bruce said she supports the increases though she worries about their impact on seniors who use city recreational facilities.
Growing demands, growing costs
The city is adding 21.24 full-time equivalent positions in 2023, at a cost of just under $2 million, in order to meet "growing demands," according to the press release. Those new positions include four second-class operators for waste and recycling, a new transportation engineer and an energy and climate analyst.
The city plans to spend an additional $306,000 on better snow clearing at pedestrian crossings, which will include eight additional employees, two leased loaders and two light duty trucks.
Coun. Ophelia Ravencroft said the extra spending will enhance pedestrian equity.
"That's an incredibly significant investment," she said.
Coun. Ian Froude said October marked the highest Metrobus ridership ever.
According to Ellsworth, the city will add two extra buses on Route 2 and one extra bus on Route 10 during evenings and weekdays during the summer to support increased ridership. The city will spend an extra $1,924,370 on Metrobus next year, most of which comes from the higher cost of fuel.
"We're trying to balance the need in the community with what we have to provide the service without having to increase the cost of that service," he said.
The operating grant for St. John's Sports and Entertainment will go up by $961,000 to $6.1 million, according to Ellsworth.
"St. John's Sports and Entertainment Ltd. has made great strides this past year but the organization is struggling as it emerges from the pandemic," he said.
Though facilities have reopened, said Ellsworth, the organization is struggling to bring events to the city and filling seats for sports teams.
"This a revenue issue, not an expense issue," he said.
The city has extended St. John's Sports and Entertainment CEO Jill Brewer's contract.
As part of its previously announced commitment, the city will spend $445,000 on preparations for the 2025 Canada Summer Games.
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