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2023 Municipal Budget(s) for the Town of Oromocto

Town Council held a public budget consultation meeting on the 19 October 2022 at the Hazen Park Centre.Please see the attached public consultation document that was shared with those in attendance here.  Information from that session was gathered and the final presentation to Council was held on 15 November 2022.

 

2023 Municipal Budget - Public Presentation to Council held on 15 November 2022 in Council Chambers. The budget passed by resolution at the 17 November 2022 Regular Session of Council.

At the regular meeting of council held on Thursday, 17 November 2022, the Oromocto Town Council passed resolutions to adopt the 2023 operating and capital budgets and the Oromocto utility operating and capital budgets.  The budget is balanced without any tax rate increase for residential properties in Oromocto and a 3.5 cent increase for residential properties in the newly formed Ward 4 of Lincoln.   There will be a slight commercial rate increase and a fixed rate increase to the water and sewer utility operating budget.
 “This budget was challenging as the Town is faced with the local governance reform and amalgamation with the LSD of Lincoln; a $100,000 reduction to its community equalization grant from the Province of New Brunswick; and a new fee of $245,000 to support the Regional Service Commission’s mandate,” said Mayor Robert Powell, “and with the demands for infrastructure renewal, there is a need to increase the fixed water/sewer rate from $12 per quarter to $37 per quarter in order to sustain the service.  There will, however, be no increase to the water consumption rates. ”  He added, “the budgets approved continues to demonstrate our commitment to using our available funds in a very responsible way.”
There will be two tax rates established for residential properties.  The rate for Oromocto will not change and remains at $1.4051 and the rate for the former LSD of Lincoln will increase to $0.9007.  The multiplier for non-residential properties multiplier will be set at 1.7.
According to John Jackson, Chief Administrative Officer, “This budget allows the Town to proceed with the initial stages of planning of the cultural and recreation centre and planning for a new sewage treatment system; to catch up on some delayed capital reinvestment in roads, equipment and fleet and to cover the inflationary increases to power, fuel, insurance and wages.”  He added that “this budget does not allow us to replace all of the aging fleet of fire fighting vehicles and equipment for public works, or to significantly upgrade some of our old infrastructure (arena, library, community centre and arts and learning centre).”
The Chief Administrative Officer presented the budget to Council at a public session held on 13 November 2023 which included the following capital budget highlights: 
• Increased funding for paving and road construction $1,415,000 (Waasis Road Overpass, Brizley Street, Watling Crescent, Long Street, MacKenzie Avenue, McElroy Crescent and Wharf Road)
• Increased funding for water and sewer $477,000
• Increased funding for equipment $287,000 (TMR equipment for Fire Department and a chipper)
• Increased funding for building maintenance $287,000
• Increased funding for parks and recreation $356,000 (Gateway accessibility upgrades, TransCanada Trail re-surfacing and MacKenzie field soccer goal replacement)
• Increased funding for fleet replacement $1,495,000 (salt truck, plow truck, trackless, field tractor, two fire trucks (phase one of two) and an excavator).

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Municipal Budgeting FAQs

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What exactly is a budget?

A planned itemized summary of money coming into the Town and how that money will be spent over a specified period of time.  

Did you know?

The Provincial Government legislates that money coming into a municipality must equal money going out?  This is also known as a balanced budget!

What is the difference between an operating and capital budget?

Operating budget:

• Pays for all the day to day activities of the corporation;
• Examples of operating expenses include, salaries and wages, insurance, supplies, fuel, and utilities to name a few.

Capital budget:

• Pays for all new big investments or rehabilitation of assets currently under the Town’s control
• Examples of capital expenses include, new fire trucks, new roads, and new sewers just to name a few

How are municipal services funded?

The majority of the municipal revenue is raised through property taxes, and legally the accounts cannot go into deficit.  Additional non-tax revenue sources come from facility and program fees, service fees, leases, licenses, permits and fines as well as grants, including a payment in lieu of taxes from the federal government. 

What is Assessment Growth?

• Assessment growth results from property taxes that are paid primarily as a result of an expanding Town (new homes and businesses).
• These new taxes are paid to receive the same services that existing tax payers receive. Given that there are an increased number of homes and businesses requiring core municipal services, civic departments, boards and commissions have to provide an increased volume of core services.

What are Reserves & Reserve Funds?

• A reserve fund is an amount set aside for a specific purpose by authority of a by-law (or as required by legislation) that is carried from year to year unless consumed or formally closed.
• Reserves are also amounts carried from year to year, but reserves are set up by resolution of Council and are used mainly as cushions against operating budget contingencies or unforeseen events.