FREDERICTON, N.B. – Municipalities, rural communities and local service districts will receive more than $74.9 million in community funding and equalization grants from the provincial government in 2018, a $265,000 increase over last year.
“Our government understands this funding is integral for municipalities, rural communities and local service districts to deliver good-quality public services and maintain the conditions for economic growth and job creation,” said Environment and Local Government Minister Serge Rousselle. “We also understand that the property assessment freeze as well as the latest census data are impacting the community funding and equalization grants this year and we are committed to working with local governments as they manage their budgets for the coming year.”
Municipalities and rural communities will have a core funding component of about $12.9 million and an equalization component of about $53.2 million. Newly incorporated and restructured communities will receive $1.8 million.
Local service districts will receive core funding of about $2.57 million and a police equalization component of close to $4.38 million.
This is the first time that new census data has been released since the funding formula came into effect in 2013. Updated population counts have had an impact on the allocation of the grant funding for 2018.
Concerning the tax base, in spite of the freeze in property assessments, new construction, major improvements and real estate sales, which are exempted from the freeze, will provide some growth in municipal revenues.
“In September, we announced that we will work, on a case-by-case basis, with local governments that will see a decrease in revenue, relative to the prior year, due to the freeze in property tax assessments, to provide financial assistance,” said Rousselle.
The list of Community Funding and Equalization Grants for municipalities and rural communities, and the list of municipal tax bases are available online.