City Moves to Three Year Budget Process

One of the major changes in Budget 2013 is that the City is moving towards a three-year budget cycle, which will line up with the City’s property assessment process.

“Budget 2013 is significant in that it also provides an expenditure and revenue forecast for 2014 and 2015,” says Councillor Danny Breen, chair of the Finance and Administration Standing Committee.  “A three-year outlook allows the City to engage in longer term planning and prepare for the fiscal challenges we may face a year or two down the road. It also gives property owners a sense of where tax rates are going over the next three years.”

Budget 2013 forecasts gross annual expenditures to increase to approximately $274 Million by 2015.  The Residential Property Tax rate required to sustain this level of expenditure is estimated at 9.2 mils for 2015, the Business Property Tax rate is estimated at 28.4 mils in 2015.

“Revenue and expenditure estimated for 2014 and 2015 are forecasts, and are subject to change,” says Councillor Breen. “We have taken into consideration all of the variables which the City has some degree of control over. But there are issues which the City cannot control, including our fiscal relationship with the provincial government, which could result in our being able to lower the mil rate should the province accept the proposal we put forth in 2011.”

The City will monitor revenue and expenditure patterns throughout 2013, and continue its practice of prudent fiscal management. The 2014 forecast will either be confirmed or adjusted in next year’s budget, at which time 2015 and 2016 forecasts will also be presented.

For further information:
Jennifer Mills
Communications Officer
City of St. John's
Phone: (709) 570-2037
Cell: (709) 690-7586
E-mail: jmills@stjohns.ca

Danny Breen
Ward 1 Councillor
Chair, Finance and Administration Standing Committee
City of St. John’s
Phone: (709) 576-2332
Cell: (709) 687-9513
E-mail: dbreen@stjohns.ca