Budget 2015: Balanced With No Tax Rate Increases

The City of St. John's presented its annual budget on Monday, Dec. 8.
 
“Budget 2015 sees revenues and expenditures balanced at $289.4 million,” said Councillor Danny Breen. “There is no tax rate increase – residential and commercial property owners will see no increase to their property tax rates in 2015, water rates will remain unchanged, and the senior citizen rebate of 25 per cent will continue.”
 
Budget 2015 provides further tax relief for qualifying seniors in the form of an interest free payment plan. Seniors in receipt of the Old Age Security and Guaranteed Income Supplement can apply to have their account set to interest free status, thus enabling them to pay their taxes over 12 months with no interest charges.
 
“With a balanced budget, savings for seniors, and no tax rate increase for two consecutive years, we are on the right track,” said Mayor Dennis O’Keefe. “As the City grows, moving into a new economic realm, we are on target with projects and objectives identified in our three year budget plan. Through our budget process we aim to strike a balance between providing first class services that residents and businesses deserve, while at the same time ensuring prudent use of fiscal resources.”
 
The 2013-15 budget plan set forth a number of goals and objectives. As we approach Budget 2015 we have made substantial progress on a number of items.
 
Investing in Infrastructure
In conjunction with the move to a three year budget planning process, the 2013-15 capital plan outlined spending in the vicinity of $300 million. These monies cover a wide range of capital projects from new recreational facilities to street improvements and maintenance, basic water sewer and road infrastructure projects.
 
Expansion of the Convention Centre totalling $63 million will promote economic activity.
 
Managing Pension Deficit
The City has managed to limit future risk to taxpayers from unfunded pension liabilities. With the cooperation of both management and unionized employees the City has achieved equal cost sharing on the annual cost of the defined benefit plan. In addition all parties have agreed that new employees will be enrolled in a defined contribution plan.
 
Enhancing Communities: Parks and Facilities
The City is significantly enhancing access to recreation services for residents. The Southlands Community Centre was completed in 2014 at a cost of $3.3 million; construction is well underway on the new $35 million Paul Reynolds Community Centre (replacing the Wedgewood Park Recreation Centre); and planning has begun for a new community centre for the west end.
 
Park enhancements are also a priority. The opening of The Loop in Bannerman Park (cost-shared at $1.8 million with the Bannerman Park Foundation) in 2014 has been extremely well received by residents; Bowring Park revitalization continues with plans for pool house upgrades; and revitalization in Victoria Park will include further public consultations in 2015. The City has also secured funding towards development of a new Kenmount Terrace park ($10 million). A new Parks and Open Spaces Master Plan, with significant input from the community, will guide further developments in this area.
 
Enhanced Fire Protection
The mission of the St. John’s Regional Fire Department (SJRFD) is to provide professional emergency services and safety programs to protect life, property and environment for all citizens. In an effort to enhance fire protection on a regional basis, a consultant has been engaged to review and assess the locations of fire stations under the SJRFD to meet the growing demands in the region. With the completion of the new West Fire Station and commencement of a new station in Paradise, residents have the security of improved fire protection services.
 
Following completion of Budget 2015, the City will undertake the development of the 2016-18 budget. This process will include an enhanced engagement process above what occurred in previous years, to allow for increased time and opportunity for input from residents and businesses in the City of St. John's.

Detailed background information is available in the Publication section.
 
Media Contact:
Kelly Maguire
Media Relations
City of St. John's
Phone: 709-576-8491
Email: kmaguire@stjohns.ca