Moncton cuts residential tax rate 8 cents in 2027 budget

Moncton city council adopted its 2027 budget on Nov. 5, cutting the residential property tax rate by eight cents to $1.2779 per $100 of assessed value, but most homeowners will still pay about 3.25 per cent more because property assessments jumped by more than 11 per cent.

The rate falls from $1.3614, the figure council held steady for 2026, according to the City of Moncton’s news release. The commercial rate is set at $2.2571 per $100, and the municipal rate for residents of the Moncton Local Service District drops to $0.5551.

Council held public deliberations on Nov. 3 before the final vote. The city said it chose not to adopt the provincial stabilizer rate for residential properties, a rate that would have meant a 5.40 per cent increase for about 90 per cent of homes. Instead, the average residential increase works out to about 3.25 per cent, more than two percentage points less than the stabilizer would have produced.

The city says it has cut its residential rate by about 37 cents per $100 since 2021. Because assessments keep climbing, a lower rate does not mean a lower bill, and a home whose assessment rose faster than the 11 per cent average will see a bigger increase than the city’s 3.25 per cent figure.

“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,” said Jacques Doucet, the city’s general manager of finance services and chief financial officer.

Mayor Shawn Crossman said public safety remains a top priority. The budget funds six new police officers, four RCMP support staff, 10 firefighters and four community safety officers. It also adds two full-time positions to support affordable housing and the city’s Homelessness Action Plan. Council also moved to appoint by-law officers as special constables, a change we reported on Nov. 4.

Water and wastewater costs are going up. The annual charge for an average household using 272 cubic metres a year will be $1,166, an increase of 2.46 per cent over 2026, and that includes $210 collected by TransAqua for wastewater treatment. Commercial customers will see increases of about 1.61 to 2.49 per cent depending on consumption and service line size. The $49.3-million utility budget also continues planning for a powdered activated carbon system and ozone treatment to deal with blue-green algae in the water supply.

The capital budget includes $35 million for roads, streets and transportation projects, $17.2 million for water and wastewater infrastructure and $15.4 million for Codiac Transpo, including new buses. It also sets aside $8.5 million for parks, recreation, culture, the Magnetic Hill Zoo and tourism, $6.5 million for storm sewers, $6.4 million for buildings and equipment, and $2.9 million for economic development and venues.

The city projects a debt ratio of 10 per cent by the end of 2026, well under the 20 per cent limit set by the Municipal Capital Borrowing Board. General operating fund debt is projected at $138.3 million, and about $20.8 million from operating budgets will go toward capital and utility projects to limit new borrowing. The city also plans about $11 million in grants to local organizations.

Council also ratified a new collective agreement with the City Hall Employees Association, local 60200 of the Public Service Alliance of Canada, at its Nov. 2 meeting. Moncton’s next regular public council meeting is scheduled for Nov. 23 at 4 p.m. at City Hall.

Source: City of Moncton news release, “Moncton Council Approves 2027 Budget Focused on Affordability and Community Priorities”, and the city’s news and notices page.

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