2021 Annual Budget

2021 City of Fredericton

[2021 ANNUAL BUDGET] City of Fredericton 2021 General Fund Budget including Non-tax Revenue, General Revenue from Property Taxes and the Community Funding and Equalization Grant, Service Based Expenditures, Community and Strategic Partner Capital Grants, Capital Expenditures, Debt Service Costs, and estimates of Asset Depreciation at Fair Market Value for 2021. This budget is presented by the eight (8) Program Results areas.

GOVERNANCE & CIVIC ENGAGEMENT MOBILITY

Responsible and responsive; Vision, leadership, decisions Safe, accessible options for movement in and around the community

PUBLIC SAFETY ECONOMIC VITALITY

A strong, resilient and growing economy A safe and secure community

ENVIRONMENTAL STEWARDSHIP CORPORATE EFFICIENCY

A Clean, Green Community: Water, Land and Air Efficient, Effective and Responsive Internal Services

SUSTAINABLE INFRASTRUCTURE

LIVABLE COMMUNITY

A Vibrant Inclusive, Well-planned, Connected and Active Community Infrastructure ready for service at a cost we can afford

CONTENTS Section I – General Fund

Council’s Vision, Priorities and Approach for the 2021 budget ...... 4 Balanced Budget Based on Principles ...... 5 Affordability ...... 5 Chart 1: Comparison of increases in market assessments to inflation ...... 6 Chart 2: Slowing tax base revenue growth from market assessments and new construction ...... 6 Municipal Tax Effort...... 7 Tax Effort by Household Income...... 7 Tax Effort by Housing Type ...... 7 Table 1.Comparison of average annual New Brunswick municipal water and sewer rates ...... 8 Strategies to maintain reasonable residential property tax effort ...... 8 Corporate Strategy ...... 9 Corporate Strategy Results ...... 9 Managing the workforce ...... 10 Chart 5: Full Time Equivalent Employees - City of Fredericton 2003 – 2021 ...... 10 Innovation & Efficiency ...... 11 Chart 7: $9.9 Million Annual Recurring Savings ...... 11 $213,572 Saved in 2021 ...... 11 Public Value ...... 12 Budgeting for Results ...... 12 Maximize Value for Money ...... 12 Flexibility ...... 12 Debt and One-Time Capital ...... 13 Debt Principles ...... 13 Sustainability ...... 14 2021 Focused Service Improvements & Enhancements ...... 15 Results areas funded from General Revenue ...... 16 General Fund Budget Summary ...... 17 2021 General Fund Revenue & Expenditures - Presented By Results Area ...... 18 Detailed Service Costing By Result Area ...... 21 General Fund Budget Expenditures by Category ...... 25 Personnel Budget by Department ...... 26

Summary of Expenditure Changes...... 26 2021 Capital Budget ...... 27 General Fund Tangible Capital Asset Values and Infrastructure Deficit ...... 28 General Fund Long-term Financial Plan and Capital Policies ...... 29 Capital Budget Funding Allotment & Allocation ...... 30 General Fund Capital Budget Annual Comparison ...... 31 General Fund Capital Budget Annual Policy Target Comparison ...... 31 Capital Budget by Results Area ...... 32 Capital Budget Result Area Detailed Projects ...... 33 Capital Budget – Debt Service Cost by Results Area ...... 37 Non-tangible Capital Included in the Service Based (Operating) Budget ...... 38 Non-tangible Capital to be Included in the Service Based (Operating) Budget ...... 38 Non-tangible Capital – Continued ...... 39 2021 Grants ...... 40 2021 Grants and Contributions ...... 41 2021 Approved Strategic Partner Capital Grants Summary ...... 42 2021 Approved Community Funding Summary ...... 43 2021 Revenue ...... 44 2021 General Revenue ...... 45 General Fund Budget Dollar – Where It Comes From ...... 45 Summary of Revenue Changes ...... 46 2021 Revenue Changes...... 47 2021 Non-Tax Revenue Rate Changes ...... 52 2021 Community Funding Equalization Grant as % of Budget ...... 54 2021 Community Funding Equalization Grant ...... 55 2021 Community Funding Equalization Grant Trend ...... 56 2021 Unconditional Grant Comparison between Cities ...... 57 2019 - 2021 Unconditional Grant Comparison between Cities ...... 58 3 Cities Community Funding Equalization Grant Per Capita Comparison ...... 59 2021 Explanation of Community Funding & Equalization Grant ...... 60 Province of New Brunswick Community Funding & Equalization Grant ...... 60 The Core Funding Component ...... 60 The Equalization Component...... 60 The Equalization Component – Elements ...... 60

The Equalization Component – Standard Expenditure ...... 60 2021 GFEG for NB Cities ...... 61 Section II – Property Tax Information ...... 62 Section III – Utility Fund (Water and Sewer) ...... 86 Section IV – Council Resolutions ...... 96

COUNCIL’S VISION, PRIORITIES AND APPROACH FOR THE 2021 BUDGET "An inspired City with a sense of community, fostering innovative development, active living and a social, environmental and fiscal conscience" - 2016 Fredericton City Council Vision

In 2016, the Strategic and External Relations Standing Committee of Council facilitated a vision and priority setting session for the newly elected Fredericton City Council. The following were areas of focus that Council identified as key priority mandates throughout the four year term of Council:

• Make Fredericton the “City of Choice” for new residents & businesses;

• Increased focus and investment in Livable Community outcomes;

• Focus on sport and cultural tourism and alignment with City assets;

• Responsible spending with safe and secure infrastructure; and

• Strengthen alignment between Council’s decision making process and completed strategic and master plans

• In the 2021 budget planning process, City Council demonstrated a strong preference for a systematic approach to achieving the City’s vision. That approach includes the following four key elements:

1. Effective planning

• Long-term financial plan and financial forecasts

• Community & strategic plans with significant public input and engagement

• Corporate strategy to deal with risks and build a resilient organization

2. Focus and flexibility

• Set the vision and establish clear priority areas of focus

• Execute on long-term plans and community priorities by adopting a Budgeting for Results approach that allows flexible implementation of long-range plans

3. Service innovation and improvements

• Use Lean Six Sigma and Value Stream Mapping as a means to improve service delivery and be innovative

• Partner with others as part of being a SMART Community

• Improving communiciations with our community about our community

4. Building an organization that is gaining efficiencies

• Execute a corporate strategy to engage and manage the workforce

BALANCED BUDGET THROUGH UNCERTAINTY The 2021 General Fund budget is one of financial restraint while managing through a global pandemic. COVID-19 is creating more questions than answers for Council and staff to prepare a balanced budget given a significant loss in non-tax revenue. Despite these challenges, all existing services are maintained. Many services have been enhanced and improved through efficiencies and innovation. This is made possible by being focused on priorities and flexible in how resources are used to provide services due to good fiscal management. Over the past several years, there has been a strong focus on cultivating engagement with Council, with the public, and with City staff at all levels, in addition to the culture of continuous improvement. This has resulted in a 2021 budget that provides affordable services while delivering public value in a long-term sustainable way.

Market Assessment increases are modest given that commercial properties have been adjusted as a result of the COVID-19 situation. A very robust residential real estate market helped to provide a positive overall market assessment increase of 0.74%. With a strong new construction growth at 1.44%, the City saw a tax assessment increase of 2.18%. While market assessment increases are intended to cover growing costs of existing services, the new construction growth should allow the City to invest more in enhancing or improving services to increase the value provided to our residents and businesses. The largest tax base growth of strong, growing community.

AFFORDABILITY In 2021, the City’s budget focuses on keeping things affordable and fair – meaning results are achieved for the community while maintaining a reasonable tax effort and staying accountable to the taxpayer.

The 2021 budget maintains the property tax rate set in 2019. A 1 cent tax rate increase was approved to accommodate higher than anticipated Worksafe NB rates. While Worksafe rates have gone down across the Province, the City’s experience with Worksafe claims means that the City still has elevated costs in this area. The 2019 tax rate increase was the first increase since 2010 despite slowing growth in revenues. Property market value assessment increases have been lower than the Consumer Price Index for the past five years with 2020 and 2021 rising slightly higher. This means that over the past 5 years the cost of property taxes has been less relative to other expenses and less than inflation. While 2021 market assessments were higher than CPI, the trend over the past 5 years is below.

Given that the City budgets based on service level provisions, when the market assessment increases are lower than CPI, it means every dollar is stretched further to maintain the intended level of service. With the HR Tactical Plan linking personnel costs to CPI, it is important that we do meet a minimum increase to the warrant revenue received from property taxes in order to maintain services.

CHART 1: COMPARISON OF INCREASES IN MARKET ASSESSMENTS TO INFLATION

Market Assessments Compared to NB CPI 6.0%

5.0%

4.0%

3.0% Market Value

2.0% NB CPI

1.0%

0.0%

-1.0%

CHART 2: SLOWING TAX BASE REVENUE GROWTH FROM MARKET ASSESSMENTS AND NEW CONSTRUCTION

MUNICIPAL TAX EFFORT

With the past trend of property tax assessments rising faster than CPI, the City was concerned that over time taxpayer affordability may be impacted. To better understand taxpayer affordability the City began tracking Municipal Tax Effort.

Municipal Tax Effort measures what percentage of household income is being used to pay for municipal property taxes and water and sewer rates.

Municipal Tax Burden Per Residential Unit Municipal Tax Effort = Household Income

TAX EFFORT BY HOUSEHOLD INCOME

For 2020, Fredericton’s overall Municipal Tax Effort was 4.7%. Income Range Avg. Municipal Avg. Municipal This means that for the average residential unit 4.7% of their Tax Burden Tax Effort household income pays for municipal taxes and water and $ 25,000-40,000 $ 2,248 6.0% sewer rates. As shown in the chart, as income ranges increase $ 40,000-55,000 2,431 4.8% so does the amount of municipal taxes paid; however, the $ 55,000-70,000 2,889 4.4% amount of taxes paid compared to income decreases. The City $ 70,000-85,000 3,385 4.3% provides a high level of service and value to all of its taxpayers $85,000-100,000 3,712 3.9% while still remaining affordable. Even for lower income ranges $100,000-115,000 4,286 4.1% $ 115,000-130,000 4,347 3.4% tax effort is still at an affordable level relative to the services > $ 130,000 5,179 3.3% being provided. Total $ 2,946 4.7%

TAX EFFORT BY HOUSING TYPE

Fredericton’s residents also have a choice when it comes to affordability as their housing decision can impact their Municipal Tax Effort. Data shows that residential homes and condos tend to have higher tax efforts on average than apartments, senior housing and mobile homes. Understanding tax effort relative to housing types allows citizens to make informed decisions that suit their needs and their level of affordability.

Municipal Tax Effort shows that Fredericton is an affordable city for its residents in which they can play a role in determining their level of affordability.

TABLE 1.COMPARISON OF AVERAGE ANNUAL NEW BRUNSWICK MUNICIPAL WATER AND SEWER RATES

Fredericton has one of the lowest average annual costs for municipal water and sewer consumers in the Province of New Brunswick. Residents receive high quality drinking water, and are provided with waste water management services that meet federal guidelines for environmental stewardship.

The 2021 Water & Sewer Utility maintains rates for both the fixed quarterly service charge and the consumption rate. Due to an increase in consumption in residential accounts attributed to people working from home during the Municipality 2020 Yearly pandemic and a booming residential construction year, the Fredericton $840 City was able to maintain the rates and still achieve higher Moncton $909 revenues. Water and sewer is an infrastructure-intensive Dieppe $948 service and requires a significant investment each and every New Maryland $1,151 year. In 2021, the City continues to leverage other Saint John $1,428 government funding to help reduce our infrastructure deficit and continue to address Federal guidelines as set out

to meet or exceed these guidelines on an annual basis.

The City of Fredericton takes pride in the high quality service provision that we provide to our nearly 18,000 customers.

STRATEGIES TO MAINTAIN REASONABLE RESIDENTIAL PROPERTY TAX EFFORT

Focus on Cost Efficiency  Reduce operating costs through efficiencies and eliminating waste  Leverage existing infrastructure by increasing infill density  Create additional value with affordable quality services and infrastructure that makes the City attractive to new residents and business and increases the population density

Diversify Revenue Base  Reduce tax reliance on residential property taxpayers  Focus on economic development to increase the size of the commercial tax base  Increase non-tax revenues

Increase Median Income  Focus on economic development to increase the size of the commercial tax base and employment opportunities  Foster entrepreneurship  Attract immigrants to start new business, buy existing business and offset the aging population

CORPORATE STRATEGY The City manages its risks related to slowing revenue growth, operating cost sustainability and continues to build a resilient organization capable of executing on Council’s vision and preparing for the City’s new Municipal Plan by using a corporate strategy focused on engaging the workforce in continuous improvement.

Engagement  Daily Management means getting the workforce involved in finding innovative solutions Attendance  Good attendance management means more capacity Manage the workforce  Optimize the size of the workforce through attrition and efficiencies Innovation & Efficiency  Lean Six Sigma culture of improving services and reducing waste Planning and Focus  Plan for the future (Municipal Plan, Corporate Strategic Plan)  Focus on Council priorities

CORPORATE STRATEGY RESULTS

The results of the corporate strategy lead to a flexible organization gaining efficiencies.

Process improvements and efficiencies mean more time for staff to Capacity Built focus on delivering quality services that are high priority

Deeply leveraging existing resources and creating internal efficiencies Costs Avoided has avoided the need to increase spending

Efficiency projects and managing the workforce create real budget dollar Budget Savings savings that are permanently removed from the budget

The culture of continuous improvements means services are Service Improvements continuously evaluated for improvement opportunities and better ways of delivering services

MANAGING THE WORKFORCE

Through the budget process the City is right-sizing staffing levels. In the past, the City grew staffing levels too quickly in too short of a time period to an unsustainable level. The workforce reduction strategy and efficiency efforts have allowed the City to return staffing to 2002 levels in most areas, which is a sustainable level for the organization. For 2021, there have been 15.11 full- time equivalent employees added to the budget offset by a reduction of 9 full-time equivalent positions for crossing guards that have been transitioned to the Corps of Commissionaires.

CHART 5: FULL TIME EQUIVALENT EMPLOYEES - CITY OF FREDERICTON 2003 – 2021

City Council, in an effort to enable the City of Fredericton Police Force to stabilize after tragedies that occurred in the City in 2018, agreed to a temporary increase to the Force’s complement by 10 Officers until the end of 2020. In order for the Police Chief to set a new baseline for service delivery, the request for permanently added 6 officers and 4.5 civilian positions was approved by Council.

INNOVATION & EFFICIENCY

CHART 7: $9.9 MILLION ANNUAL RECURRING SAVINGS

Council avoided That’s like getting raising the tax 12 months of rate by 13¢ services for the price of 11

$213,572 SAVED IN 2021 Total Non-Personnel Savings $213,572

 Energy Efficiency Savings  Phone Line Rationalization  Building Rental Savings  Contract Services for prisoner cell monitoring @ Police Station

PUBLIC VALUE

BUDGETING FOR RESULTS • Transform dollars into results creating public value • Shown by cost of service, and results achieved • Budget is a one-year snapshot of a longer-term plan aimed at achieving the City’s vision

MAXIMIZE VALUE FOR MONEY Attraction & Retention (population growth) • Shows City is achieving results important to public – great place to live and do business. Creating Value for Residents • Service value outweighs additional costs. Creation and Implementation of Strategies/Plans – Execute • Municipal Plan • Historic Garrison District Plan • Officers Square Plan • City Centre Plan • Economic Development Strategy

FLEXIBILITY The budget focuses on being flexible – allowing room to address community priorities and changes in conditions. In the long-term financial plan, debt load is managed to allow room to address one-time capital to deliver on key strategic Council priorities – such as the planned contribution to the Performing Arts Centre or the acceleration of implementing the plan for improvements to Officer’s Square.

Flexibility allows the ability to:

• Adapt to changing needs/perceptions

• Accomplish community vision (Municipal Plan) and Council priorities over time and within a reasonable level of tax effort (affordability)

• Allows the City to manage in a time of crisis and the ability to deliver a balanced budget without negatively impacting service delivery

DEBT AND ONE-TIME CAPITAL

Flexibility for Council’s key strategic and significant capital initiatives

Debt Servicing Costs – principal and interest payments on long term borrowings.

• Used for major capital projects that provide long term value to citizens.

• Used for longer lived assets that benefits those paying for it over a long period of time (Intergenerational Equity).

One Time Funding – available in years where new debt is not incurred but maintains 8% capacity room for debt.

• Used to further key strategic Council priorities to meet the needs of the community.

DEBT PRINCIPLES • Debt is not used for on-going renewal, repairs and replacement projects. The City “doesn’t borrow to buy groceries or for household repairs”.

• Debt room is preserved to provide flexibility in financing long-term major capital priorities towards Council’s mandate every 4-8 years

• Debt financing spreads the cost of assets over a longer portion of their useful lives. Paid by those that use the assets over time.

• Good planning means that the people who benefit from an asset are also the ones who pay for it (intergenerational equity)

• Careful that debt servicing payments don’t reduce fiscal room and crowd out other spending and therefore Council Policy endorses an 8% limit on debt

SUSTAINABILITY Considering the impact of today’s decisions on future generations:

• Financial sustainability requires long-term planning; it does not just happen

• “spending the right money on the right things at the right time” within financial constraints

• “meeting existing service delivery without compromising the ability to meet future needs”

Fiscal Strategy – Capital Funding & Financing Balances Renewal with New, and aligns PAYGO and Debt

• PAYGO Capital and Debt ≈ 20% of budget

• Debt less than 8% of budget

• Infrastructure replacement funding strategy

• Reduce infrastructure deficit over 20 years

• Carefully managed capital asset management plan

• Preventative maintenance

• Rationalize, right-size and optimize existing infrastructure

• Tie to service delivery and demand

2021 FOCUSED SERVICE IMPROVEMENTS & ENHANCEMENTS

 Corporate Leadership – managing through the global pandemic while continuing to provide a high level of service to our residents

 Economic Vitality - support through community funding partner groups and continued investment in festivals and events. Looking forward to a post-COVID environment and supporting local businesses through the pandemic.

 Livable Community – Continued reinvestment in the downtown urban core, executing on the City Centre Plan with continued investments in the shared street concept with Officers Square and new park development as well as completion of major park plans

 Mobility – improving technology that makes using transit and parking services easier. Connecting bus stops to active transportation corridors with a focus in 2021 on accessibility. Implementing recommendations of the parking and transit studies.

 Alternative transportation focus on school zone pedestrian safety improvements, focus on neighborhood trails and park connections, trail connections for cycling and cycling infrastructure

 Public Safety- Additonal 10.5 additional full-time eqivalent employees to support front line staff and HUB model to address social issues including but not limited to homelessness and mental health calls. Strong focus on training in all areas of public safety.

 Corporate Efficiency – Digital Fredericton/Smart City implementation with continued focus on innovative core systems to support service delivery to residents through a connected community. Renewed focus and methodology of innovations and improvement to make rapid changes to the way services are delivered.

 Communications – expansion of Engage Fredericton platform as well as the roll out of the new Mass notification app which will enable rapid notification of recreation facility closures, road closures and other emergency notificaition as required.

RESULTS AREAS FUNDED FROM GENERAL REVENUE

The budget creates value through eight municipal Program Result Areas. Each Program Result Area has specific strategies and objectives outlined through the Municipal Plan, Master Plans and Studies. Council articulates priority areas of focus through the governance and civic engagement process throughout the year.

GENERAL FUND BUDGET SUMMARY

CITY OF FREDERICTON General Fund 2021 Annual Budget % of Budget 2021 2020 Revenue Warrant for Property Taxes 88.4% $ 110,537,926 $ 108,183,452 Community Funding and Equalization Grant 1.6% 2,026,188 1,890,636 Federal Payment in Lieu of Taxes 0.0% 11,627 1,742 Non-tax Revenue 8.7% 10,900,383 14,302,776 Revenue from Reserves 1.3% 1,627,115 - Total Revenue 100% $ 125,103,239 $ 124,378,606

Operating Expenditures Personnel 54.7% 68,394,217 66,529,403 Non-personnel 27.3% 34,187,433 32,584,875 Total Operating Expenditures 82.0% $ 102,581,650 $ 99,114,278

Capital Expenditures Capital Expenditures 13.7% 17,144,600 19,855,855 Debt Service Costs 4.3% 5,376,989 5,408,473 Total Capital Expenditures 18.0% $ 22,521,589 $ 25,264,328

Total Operating and Capital Expenditures 100% $ 125,103,239 $ 124,378,606

Net Annual Cash Budget $ - $ -

Non-Cash Expense Asset Depreciation (Note 1) 22% $ 27,047,046 $ 25,285,900

Note 1: Asset Depreciation is estimated as the current replacement cost of assets at fair market value divided by the expected useful life. It shows the cost of using of assets for a given year.

2021 GENERAL FUND REVENUE & EXPENDITURES - PRESENTED BY RESULTS AREA Programs and Services Detailed Cost 2021 2020 Change

General Expenses / Revenue Real and Business Property $ (110,537,926) $ (108,183,452) $ (2,354,474) 2% Community Funding & Equalization Grant (2,026,188) (1,890,636) (135,552) 7% Payment in Lieu of Taxes (Federal) (11,627) (1,742) (9,885) 567% Consolidated Deficit (2nd Previous Year) 840,030 (1,988,495) 2,828,525 -142% N.B. G.I.C. - Assessment Costs 1,509,240 1,474,741 34,499 2% Revenue from Reserves (1,627,115) - (1,627,115) 100% General Revenue Total $ (111,853,586) $ (110,589,584) $ (1,264,002) 1%

Governance & Civic Engagement Community Leadership $ 2,499,367 $ 2,237,102 $ 262,265 12% Intergovernmental Affairs 76,723 78,016 (1,293) -2% Management Systems 2,789,734 2,429,666 360,068 15% Governance & Civic Engagement Total $ 5,365,824 $ 4,744,784 $ 621,040 13%

Economic Vitality Business Attraction & Retention $ 883,716 $ 1,042,026 $ (158,310) -15% Development Approval 1,261,458 1,146,657 114,801 10% Land Use Planning 796,140 750,770 45,370 6% Tourism & Events Development 1,291,125 1,022,702 268,423 26% Tourism Marketing & Sales 4,139,245 4,082,284 56,961 1% Economic Vitality Total $ 8,371,683 $ 8,044,439 $ 327,244 4%

Environmental Stewardship Composting $ 60,244 $ 12,642 $ 47,602 377% Environmental Outreach 72,739 116,314 (43,575) -37% Solid Waste Management 3,273,715 3,149,223 124,492 4% Storm Water Management 1,993,854 1,717,602 276,252 16% Environmental Stewardship Total $ 5,400,553 $ 4,995,780 $ 404,773 8%

Programs and Services Detailed Cost 2021 2020 Change

Livable Community Arboriculture $ 1,406,346 $ 1,526,201 $ (119,855) -8% Community Liaison & Social Outreach 260,524 157,126 103,398 66% Community Special Event Coordination & Support 671,535 838,246 (166,711) -20% Cultural Development 2,874,429 2,677,593 196,836 7% Heritage Planning & Conservation 222,064 217,419 4,645 2% Horticulture 878,988 1,253,900 (374,912) -30% Leisure and Recreation Development and Delivery 1,172,378 447,868 724,510 162% Parks and Playground Management 2,890,742 2,455,183 435,559 18% Recreation Facility Scheduling 8,329,136 8,680,690 (351,554) -4% Sport Field Management 1,311,022 667,818 643,204 96% Livable Community Total $ 20,017,164 $ 18,922,044 $ 1,095,120 6%

Programs and Services Detailed Cost 2021 2020 Change

Mobility Chartered Busing $ - $ 41,269 $ (41,269) -100% Dial-a-Bus Transit 718,549 659,879 58,670 9% Fixed Route Scheduled Transit 5,711,812 5,179,697 532,115 10% Parking Management 1,008,999 142,423 866,576 608% Roadway Management 19,662,996 19,515,801 147,195 1% Sidewalk Management 2,940,199 2,487,500 452,699 18% Taxi Industry Regulation 66,849 75,693 (8,844) -12% Trails Management 1,127,422 892,727 234,695 26% Transportation Network Management 1,571,719 1,190,347 381,372 32%

Mobility Total $ 32,808,545 $ 30,185,336 $ 2,623,209 9%

Public Safety Animal Registration & Control $ 132,453 $ 132,153 $ 300 0% Building Construction Permission & Enforcement 246,515 337,743 (91,228) -27% Bylaw Enforcement 379,855 344,834 35,021 10% Emergency Preparedness 2,875,520 732,780 2,142,740 292% Fire Emergency Incident Mitigation 13,692,989 14,109,986 (416,997) -3% Fire Investigation 276,949 495,516 (218,567) -44% Fire Prevention & Inspection 742,368 2,336,732 (1,594,364) -68% Police - Enforce Fed, Prov, & Municipal Laws 4,388,026 5,852,581 (1,464,555) -25% Police - Keeping the Peace 3,434,473 5,801,944 (2,367,471) -41% Police - Prevent & Detect Crime 8,432,116 5,923,399 2,508,717 42% Police - Protect Life and Property 7,550,173 5,131,465 2,418,708 47% Public Safety Total $ 42,151,437 $ 41,199,132 $ 952,305 2%

Corporate Communications Management $ 756,546 $ 517,431 $ 239,115 46% Continous Improvement 762,655 482,673 279,982 58% Facilities Management 8,994,606 6,595,218 2,399,388 36% Financial Management 1,442,923 1,352,245 90,678 7% Fleet & Equipment Management 4,235,837 4,160,557 75,280 2% Human Resource Management 1,033,472 1,141,530 (108,058) -9% Information Technology Solution Delivery 1,068,566 826,079 242,487 29% Information Technology Support 1,507,873 1,739,574 (231,701) -13% Insurance Coverage 327,412 105,618 221,794 210% Legal Services 673,055 760,348 (87,293) -11% Occupational Health & Safety 164,316 52,284 112,032 214% Public Procurement Management 382,577 435,872 (53,295) -12% Public Safety Service Request Management 1,215,610 1,151,784 63,826 6% Real Estate Management 2,058,626 1,990,245 68,381 3% Records Management 161,793 70,866 90,927 128% Request Management 273,004 338,495 (65,491) -19% Corporate Services Allocated to External Services $ (25,058,871) $ (21,720,817) $ (3,338,054) 15% Corporate Total $ - $ - $ -

Programs and Services Detailed Cost 2021 2020 Change

Sustainable Infrastructure Capital Asset Management $ 87,329 $ 1,399,313 $ (1,311,984) -94% Capital Planning and Implementation 796,356 558,217 238,139 43% Capital Prioritization and Planning Management 1,346,298 529,396 816,902 154% Debt & Affordability Management 33,855 32,716 1,139 3% Debt Service Cost 5,376,989 5,408,473 (31,484) -1% New/Extension Capital Expenditures 3,481,000 6,090,476 (2,609,476) -43% Renewal/Rebuild Capital Expenditures 13,663,600 13,765,379 (101,779) -1% Sustainable Infrastructure Total $ 24,785,427 $ 27,783,970 $ (2,998,543) -11%

DETAILED SERVICE COSTING BY RESULT AREA

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost Net Cost (Non-Cash 2021 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) General Expenses / Revenue Real and Business Property $ (110,537,926) $ (110,537,926) Community Funding & Equalization Grant (2,026,188) (2,026,188) Payment in Lieu of Taxes (Federal) (11,627) (11,627) Consolidated Deficit (2nd Previous Year) $ 840,030 840,030 840,030 N.B. G.I.C. - Assessment Costs 1,509,240 1,509,240 1,509,240 Revenue from Reserves (1,627,115) (1,627,115) (1,627,115) General Revenue Total $ 2,349,270 $ (1,627,115) $ (111,853,586) $ - $ (111,853,586)

Governance & Civic Engagement Community Leadership $ 685,178 $ 1,700,692 $ - $ 2,385,869 $ 113,497 $ 2,499,367 Intergovernmental Affairs 76,723 - - 76,723 - 76,723 Management Systems 1,915,416 788,307 - 2,703,723 86,011 2,789,734 Governance & Civic Engagement Total $ 2,677,317 $ 2,488,999 $ - $ 5,166,315 $ 199,508 $ 5,365,824

Economic Vitality Business Attraction & Retention $ 28,012 $ 855,704 $ - $ 883,716 $ - $ 883,716 Development Approval 658,049 475,960 (78,000) 1,056,010 205,448 1,261,458 6% Land Use Planning 401,847 356,036 - 757,883 38,257 796,140 Tourism & Events Development 621,647 604,641 - 1,226,287 64,837 1,291,125 Tourism Marketing & Sales 593,669 2,146,923 - 2,740,592 1,398,652 4,139,245 Economic Vitality Total $ 2,303,225 $ 4,439,264 $ (78,000) $ 6,664,489 $ 1,707,194 $ 8,371,683 1%

Environmental Stewardship Composting $ 40,093 $ 14,338 $ - $ 54,431 $ 5,813 $ 60,244 Environmental Outreach 49,654 21,303 - 70,957 1,782 72,739 Solid Waste Management 70,971 3,187,449 - 3,258,420 15,294 3,273,715 Storm Water Management 329,748 759,564 - 1,089,312 904,542 1,993,854 Environmental Stewardship Total $ 490,467 $ 3,982,655 $ - $ 4,473,121 $ 927,432 $ 5,400,553

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost Net Cost (Non-Cash 2021 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) Livable Community Arboriculture $ 833,600 $ 423,014 $ - $ 1,256,615 $ 149,731 $ 1,406,346 Community Liaison & Social Outreach 183,354 70,518 - 253,871 6,652 260,524 Community Special Event Coordination & Support 213,196 353,912 - 567,108 104,427 671,535 Cultural Development 175,885 2,245,969 (6,300) 2,415,553 458,876 2,874,429 0% Heritage Planning & Conservation 167,040 47,488 - 214,528 7,536 222,064 Horticulture 519,900 228,778 - 748,677 130,311 878,988 Leisure and Recreation Development and Delivery 1,180,782 1,884,075 (2,060,110) 1,004,747 167,631 1,172,378 64% Parks and Playground Management 701,830 1,321,008 - 2,022,838 867,904 2,890,742 Recreation Facility Scheduling 608,521 4,509,652 (3,750) 5,114,423 3,214,713 8,329,136 0% Sport Field Management 463,921 260,994 - 724,915 586,107 1,311,022 0% Livable Community Total $ 5,048,030 $ 11,345,406 $ (2,070,160) $ 14,323,276 $ 5,693,888 $ 20,017,164 9%

Mobility Chartered Busing $ - $ - $ - $ - $ - $ - Dial-a-Bus Transit 363,976 341,712 (18,000) 687,688 30,860 718,549 2% Fixed Route Scheduled Transit 3,328,038 2,690,094 (1,480,600) 4,537,532 1,174,280 5,711,812 21% Parking Management 530,150 1,606,615 (1,857,956) 278,808 730,191 1,008,999 65% Roadway Management 3,095,427 5,315,352 (423,441) 7,987,338 11,675,658 19,662,996 2% Sidewalk Management 1,066,201 492,478 - 1,558,679 1,381,521 2,940,199 Taxi Industry Regulation 79,545 2,304 (15,000) 66,849 - 66,849 18% Trails Management 572,828 269,127 - 841,955 285,468 1,127,422 Transportation Network Management 846,532 629,689 - 1,476,220 95,499 1,571,719 Mobility Total $ 9,882,697 $ 11,347,370 $ (3,794,997) $ 17,435,070 $ 15,373,476 $ 32,808,545 10%

Public Safety Animal Registration & Control $ 20,287 $ 123,666 $ (11,500) $ 132,453 $ - $ 132,453 8% Building Construction Permission & Enforcement 808,101 408,985 (1,187,000) 30,086 216,429 246,515 83% Bylaw Enforcement 290,008 98,224 (26,000) 362,233 17,623 379,855 6% Emergency Preparedness 1,693,704 918,360 - 2,612,064 263,456 2,875,520 Fire Emergency Incident Mitigation 11,016,016 2,950,540 (1,360,396) 12,606,160 1,086,828 13,692,989 9% Fire Investigation 177,181 78,576 - 255,757 21,192 276,949 Fire Prevention & Inspection 435,748 253,641 - 689,389 52,980 742,368 Police - Enforce Fed, Prov, & Municipal Laws 2,983,915 1,170,417 - 4,154,333 233,694 4,388,026 0% Police - Keeping the Peace 2,795,868 1,089,538 (669,284) 3,216,121 218,351 3,434,473 Police - Prevent & Detect Crime 5,936,798 2,039,457 (2,000) 7,974,255 457,861 8,432,116 0% Police - Protect Life and Property 5,285,985 1,826,349 (7,000) 7,105,334 444,839 7,550,173 0% Public Safety Total $ 31,443,611 $ 10,957,754 $ (3,263,180) $ 39,138,185 $ 3,013,251 $ 42,151,437 7%

Depreciation Non-personnel Non-Tax Cost Recovery Personnel Cost. Net Cost (Non-Cash 2021 Cost Revenue Ratio Programs and Services Detailed Cost Expense) A B C D = A + B - (C) E G = C / (A+B+E) Corporate Communications Management $ 409,336 $ 347,210 $ - $ 756,546 $ - $ 756,546 Continous Improvement 708,255 54,400 - 762,655 - 762,655 Facilities Management 3,910,817 5,083,789 - 8,994,606 - 8,994,606 Financial Management 1,581,850 145,573 (284,500) 1,442,923 - 1,442,923 16% Fleet & Equipment Management 2,250,045 1,985,792 - 4,235,837 - 4,235,837 Human Resource Management 801,667 231,805 - 1,033,472 - 1,033,472 Information Technology Solution Delivery 934,966 133,600 - 1,068,566 - 1,068,566 Information Technology Support 630,475 877,398 - 1,507,873 - 1,507,873 Insurance Coverage 60,927 266,485 - 327,412 - 327,412 Legal Services 542,253 130,802 - 673,055 - 673,055 Occupational Health & Safety 164,316 - - 164,316 - 164,316 Public Procurement Management 303,651 78,926 - 382,577 - 382,577 Public Safety Service Request Management 2,523,315 101,841 (1,409,546) 1,215,610 - 1,215,610 54% Real Estate Management 271,996 1,786,630 - 2,058,626 - 2,058,626 Records Management 161,793 - - 161,793 - 161,793 Request Management 258,454 14,550 - 273,004 - 273,004 Corporate Services Allocated to External Services $ (15,514,116) $ (11,238,801) $ 1,694,046 $ (25,058,871) $ - $ (25,058,871) 6% Corporate Total $ - $ - $ - $ - $ - $ -

Sustainable Infrastructure Capital Asset Management $ 87,329 $ - $ - $ 87,329 $ - $ 87,329 Capital Planning and Implementation 150,898 522,962 - 673,860 122,497 796,356 Capital Prioritization and Planning Management 764,173 572,324 - 1,336,497 9,800 1,346,298 Debt & Affordability Management 32,355 1,500 - 33,855 - 33,855 Debt Service Cost - 5,376,989 - 5,376,989 - 5,376,989 New/Extension Capital Expenditures - 3,481,000 - 3,481,000 - 3,481,000 Renewal/Rebuild Capital Expenditures - 13,663,600 - 13,663,600 - 13,663,600 Sustainable Infrastructure Total $ 1,034,755 $ 23,618,375 $ - $ 24,653,130 $ 132,297 $ 24,785,427

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GENERAL FUND BUDGET EXPENDITURES BY CATEGORY

PERSONNEL BUDGET BY DEPARTMENT

SUMMARY OF EXPENDITURE CHANGES

Operating Expenditures Proposed 2021 2020 % Change Personnel 68,394,217 66,529,403 2.8% Non-personnel 34,187,433 32,584,875 4.9% Total Operating Expenditures $ 102,581,650 $ 99,114,278 3.5%

Capital Expenditures Capital Expenditures 17,144,600 19,855,855 -13.7% Debt Service Costs 5,376,989 5,408,473 -0.6% Total Capital Expenditures $ 22,521,589 $ 25,264,328 -10.9%

Total Operating and Capital Expenditures $ 125,103,239 $124,378,606 0.6%

2021

2021 Capital Budget

GENERAL FUND TANGIBLE CAPITAL ASSET VALUES AND INFRASTRUCTURE DEFICIT The total estimated replacement cost of the General Fund infrastructure is estimated to be eight hundred and twenty-nine million dollars ($829M) (see Chart 1 below). There are tangible capital assets owned by the City that have reached the end of their useful lives but have not yet been replaced. The current replacement cost of these assets is referred to as the infrastructure deficit and is estimated to be ninety three million dollars ($93M) (see Chart 2 below).

Chart 1.Total replacement value

Chart 2.Infrastructure deficit

GENERAL FUND LONG-TERM FINANCIAL PLAN AND CAPITAL POLICIES The City is addressing the infrastructure deficit through its fiscal policies and long-term financial plan. The Long-term Financial Plan (LTFP) prescribes the level of funding required for infrastructure renewal that will reduce the infrastructure deficit over a twenty year period. There are three key components of Council’s adopted financial plans and polices that make this strategy effective:

1. Fiscal policy requires that seventy five percent (75%) of the pay-as-you-go capital budget be spent on infrastructure renewal or rebuilding, and sets a target of no more than ten percent capital spending on new infrastructure; 2. The LTFP provides an additional five percent (5%) for infrastructure deficit funding each year; and 3. Debt service costs are limited to eight percent (8%) of the total budget to maintain sufficient pay-as- you-go capital budget.

With these financial plans and fiscal policies the infrastructure deficit will be reduced to thirty one ($31) over the next twenty years. Without the Council adopted LTFP and fiscal policies the infrastructure deficit would triple to an estimated two hundred and forty million dollars ($240M) in just the next fifteen years (see Chart 3 below).

Chart 3.Impact of infrastructure funding

CAPITAL BUDGET FUNDING ALLOTMENT & ALLOCATION The annual capital budget funding allotment is based on Council’s Long-term Financial Plan and policies for Capital Prioritization and Investment, and Debt Affordability Management. The budget follows the financial plans and policies by allocating seventy five percent (75%) of the annual pay-as- you-go base budget to infrastructure renewal, fifteen percent (15%) to capital maintenance and planning, and ten percent (10%) to new infrastructure. An additional five percent is added to the prior year’s renewal amount for infrastructure deficit funding.

Debt service costs are limited to eight percent (8%) of total revenues. Any amount of the debt service budget that is not committed to existing debt servicing costs are available in the capital budget as one-time capital amounts.

Table 1.Capital Budget Funding

Capital Budget Funding Capital Budget Policy 2021 Amount Annual pay-as-you-go capital budget 0% Increase over prior year $ 12,077,196 Infrastructure deficit funding 5% Increase over prior year renewal budget 7,462,508 Total pay-as-you-go capital budget 19,539,704 One time capital 8% Debt limit, less existing debt service costs 3,250,000 Total Funding Available for Capital Budget $ 22,789,704

Table 2.Capital Budget Allocation

Proposed Proposed Policy 2021 Capital Budget Allocation Budget Budget Target Ratios Amount Tangible Capital - Infrastructure Renewal / Rebuilding 75% of annual pay-as-you-go capital budget $ 14,654,778 77% $ 13,663,600

Tangible Capital - New Infrastructure / Extension One time capital 3,250,000 1,716,600 10% of annual-pay-as-you-go capital budget 1,953,970 10% 1,764,400 Total New Infrastructure / Extension $ 5,203,970 $ 3,481,000

Total Tangible Capital $ 19,858,748 $ 17,144,600

Non-tangible Capital Assets * 15% of annual pay-as-you-go capital budget $ 2,930,956 13% $ 2,207,750

Total Capital Budget $ 22,789,704 $ 19,352,350

*Non-tangible capital asset spending is included in the operating budget.

GENERAL FUND CAPITAL BUDGET ANNUAL COMPARISON The tables below show a comparison of the annual amounts budgeted for tangible capital renewal and new investments. (Non-tangible capital budget allotments are included with the operating budget)

Proposed General Fund Capital Budget Allotment 2021 2019 Budget 2020 Budget Proposed Budget Regular Pay-as-you-go Capital $ 9,828,453 $ 10,036,196 $ 7,965,492 Infrastructure Deficit Funding 6,021,732 6,569,659 7,462,508 One-time Capital 2,800,000 3,250,000 1,716,600 Total $ 18,650,185 $ 19,855,855 $ 17,144,600

*One-time capital represents the portion of the capital budget available for debt repayments on future capital borrowing projects.

General Fund Capital Uses Summary

2021 2019 Budget 2020 Budget Proposed Budget Replacement/Rebuild $ 14,038,585 $ 13,765,379 $ 13,663,600 New/Extension 4,611,600 6,090,476 3,481,000 Total Tangible Capital $ 18,650,185 $ 19,855,855 $ 17,144,600

GENERAL FUND CAPITAL BUDGET ANNUAL POLICY TARGET COMPARISON On average, over a three year period the capital budget policy targets have been met.

3 Year Capital Budget Category 2019 2020 2021 Average Replacement/Rebuild 80% 74% 77% 77% New/Extension 10% 15% 10% 12% Non-tangible Capital 10% 11% 13% 11%

CAPITAL BUDGET BY RESULTS AREA The capital budget is shown by program results area. Below is a summary of capital budget spending by results area. The following pages provide a detailed list of planned project expenditures by program results area.

2021 Capital Budget New/ Result Area Renewal/Rebuild Total Extension Economic Vitality $ 32,800 $ - $ 32,800 Environmental Stewardship 2,000,000 250,000 2,250,000 Livable Community 2,025,800 1,765,000 3,790,800 Mobility 7,958,500 1,125,000 9,083,500 Public Safety 777,600 50,000 827,600 Sustainable Infrastructure - 150,000 150,000 Corporate 868,900 141,000 1,009,900 $ 13,663,600 $ 3,481,000 $ 17,144,600

Capital projects are Approved that deliver on Council’s Vision of “An inspired City with a sense of community, fostering innovative development, active living and a social, environmental and fiscal conscience”.

The capital budget for 2021 builds on the following themes from Council’s vision:

• Responsible Infrastructure • Implementation of the City Centre Plan, Officer’s Square and Historic Garrison District Plans • Park Plan Implementation • Neighborhood Parks and Trails • Active Transportation • Accessible Transportation • Amenities that Attract • Sports Tourism • Renewable Energy • Corporate Efficiencies

CAPITAL BUDGET RESULT AREA DETAILED PROJECTS Economic Vitality

Renewal/Rebuild Tourism Department - Passenger Van $ 32,800 Economic Vitality Total Renew al/Rebuild $ 32,800

Total Economic Vitality Capital $ 32,800

Environmental Stewardship

Renewal/Rebuild Storm Sewers Renewal $ 2,000,000 Environmental Stewardship Total Renewal/Rebuild $ 2,000,000

New/Extensions Refillable Water Fountains $ 50,000 Campbell Creek Dam Removal 200,000 Environmental Stewardship Total New/Extension $ 250,000

Total Environmental Stewardship Capital $ 2,250,000

Livable Community

Renewal/Rebuild Parks & Trees - Trailer c/w Ramp $ 5,500 Special Event Asset Renewal 15,000 Parks & Trees - 72" Zero Turn Mower 19,200 Park Culvert Renewal 30,000 Emerald Ash Borer Action Plan (Remove and Replace) 50,000 Playhouse Asbestos Management Plan Actions 50,000 Old Burial Ground Renewal 50,000 Trail & Pathway Renewal 50,000 Parks & Trees - 3/4 Ton Ext Cab 4x4 54,300 Horticulture Renewal 75,000 Fredericton Indoor Pool (HVAC, Mechanical, Controls) 75,000 Arena Ice Plant Compressor Investigations/Rebuilds/Replacement 90,000 Parks & Trees - 1/2 Ton Ext Cab 4x4 (2) 96,000 Arboriculture Renewal 100,000 Building Services - Ice Resurface Unit 140,000 Trail Culvert Renewal 150,000 Playground Infrastructure Renewal 150,000 Outdoor Sport Court & Field Renewal 250,000 Parks & Trees - 65' Aerial Bucket Truck 275,800 Park Infrastructure Renewal 300,000 Livable Community Total Renewal/Rebuild $ 2,025,800

New/Extensions Urban Plan Implementation $ 15,000 All Wheeled Sports Plaza (One Time) 50,000 Outdoor Sport Court & Field 250,000 Outdoor Recreation Infrastructure 450,000 Park Plan Implementation - Wilmot, Carleton, Odell, Killarney 1,000,000 Livable Community Total New/Extensions $ 1,765,000

Total Livable Community Capital $ 3,790,800

Mobility

Renewal/Rebuild Roadway Operations - Trackless Colpron Sander Unit $ 27,500 Court Upgrades 35,000 Parking Services - Small Van 40,000 Parking Equipment Renewal (Meters and Pay Stations) 50,000 River Street Reconstruction 50,000 Pedestrian & Trail Crossing Improvements 75,000 Regent Depot Site Works 75,000 Traffic Controller Renewals 85,000 Roadway Operations - 1/2 Ton Ext Cab 4x4 (2) 96,000 Sidewalks and Lighting - Urban Design 105,000 Roadway Operations - Trackless Sidewalk Machine 144,000 Parking Garage Repairs 150,000 Transportation Safety Improvements 300,000 Roadway Operations - Loader c/w Plow and Wing 326,000 Sidewalk Renewal 350,000 Union Street Reconstruction / DMAF 450,000 Rookwood Ave. Phase 1 & Odell Roundabout 650,000 St. Marys Street ( Depot to Two Nations Crossing - Phase 2) 750,000 Brookside Drive Reconstruction Phase 1 800,000 Curb & Gutter Renewal 900,000 Asphalt Resurfacing 2,500,000 Mobility Total Renewal/Rebuild $ 7,958,500

New/Extensions Accessible Bus Stops and Shelters $ 50,000 Regent Depot Site Works 75,000 Land Purchases 100,000 Sidewalk & Subdivision Connection Extensions 250,000 Active Transportation System Extension (Trails, Gaps) 250,000 Downtown Public Realm Upgrades 400,000 Mobility Total New/Extensions $ 1,125,000

Total Mobility Capital $ 9,083,500

Public Safety

Renewal/Rebuild Body Armour $ 20,000 Building Inspection - Mid Size Sedan 30,000 By-Law Enforcement - Mid Sized Sedan 30,000 Police Network Internal Network Devices and Wifi 32,000 Two Nations Fire Station Paving (Training Compound) 50,000 Jaws of Life - Three Tool Set 56,000 Police - Unmarked Sedan (2) 60,000 Police Department - Marked Van 65,000 Police Department - Marked Sedan (3) 159,600 Police Station Renovations 275,000 Public Safety Total Renewal/Rebuild $ 777,600

New/Extensions Two Nations Fire Station Paving (Training Compound) $ 50,000 Public Safety Total New/Extension $ 50,000

Total Public Safety Capital $ 827,600

Sustainable Infrastructure

New/Extensions Carleton Bridge Pier Abutment Stabilization $ 150,000 Sustainable Infrastructure Total New/Extension $ 150,000

Total Sustainable Infrastructure Capital $ 150,000

Corporate

Renewal/Rebuild CCTV Cameras - Police Station and Corporate $ 26,000 Building Services - 1/2 Ton Truck (Reg Cab) 37,200 Fleet Division - Van 53,200 Mobile and Domain Device Management and EndPoint Protections 70,000 Site Works (369 Lincoln Road and Boat Club) 87,500 Roofing Various Buildings (Roof Re-Cap) 150,000 Data Centre Infrastructure Renewal 195,000 Information Management Project and SharePoint Upgrades 250,000 Corporate Total Renewal/Rebuild $ 868,900

New/Extensions Operational data collection IoT projects $ 25,000 Community Innovation Program Development 28,500 Site Works (369 Lincoln Road and Boat Club) 87,500 Corporate Total New/Extensions $ 141,000

Total Corporate Capital $ 1,009,900

CAPITAL BUDGET – DEBT SERVICE COST BY RESULTS AREA The annual commitments for debt service cost are shown below and summarized by result area. The total amount required to meet debt service commitments for 2021 is $5,376,989, which is 4.3% of the total budget.

2021 Debt Repayment Budget - By Program Results Area Result Area Debentures Leases Total Mobility $ - $ 251,000 $ 251,000 Livable Community 2,653,874 - 2,653,874 Economic Vitality 1,761,844 - 1,761,844 Public Safety 560,743 149,528 710,271 $ 4,976,461 $ 400,528 $ 5,376,989

Mobility Debt Service Cost Bus Lease (Year 1 of 5) $ 126,000 Vacuum Truck Lease (Year 1 of 5) 125,000 Total Mobility Debt Service Costs $ 251,000

Livable Community Debt Service Cost Grant Harvey Centre $ 1,201,309 Willie O'Ree Place 928,127 Lady Beaverbrook Rink 172,814 Queen Square Pool 100,341 Royal Road Pool 100,341 Henry Park Pool 33,233 Marysville Pool 20,709 Performing Arts Centre 97,000 Total Livable Community Debt Service Cost $ 2,653,874

Economic Vitality Debt Service Costs Convention Centre $ 1,142,006 East End Parking Garage 619,838 Total Economic Vitality Debt Service Costs $ 1,761,844

Public Safety Debt Service Costs Two Nations Fire Station $ 560,743 Police Armoured Rescue Vehicle Lease (Year 5 of 6) 57,777 SCBA Equipment (Year 4 of 5) 91,751 Total Public Safety Debt Service Costs $ 710,271

Total Debt $ 5,376,989

NON-TANGIBLE CAPITAL INCLUDED IN THE SERVICE BASED (OPERATING) BUDGET Non-tangible capital asset (NTCA) expenditures are costs related to the stewardship and care of capital assets and infrastructure. These costs typically include pre-planning and design, professional services, long-term plans, consulting and public engagement, and maintenance and renewal of smaller assets that do not meet the dollar threshold of the capitalization policy.

NTCA expenditures are not included in the capital budget. Instead, they are included in the cost of service delivery and presented with the service based budget. Capital assets and infrastructure are used in the delivery of services so costs associated with infrastructure operations are linked to the services rendered in the service budget. This information is provided to communicate areas of emphasis related to capital planning, and to highlight the renewal and on-going care of existing infrastructure.

NON-TANGIBLE CAPITAL TO BE INCLUDED IN THE SERVICE BASED (OPERATING) BUDGET

Program 2021 Corporate Proceeds on disposal of existing assets $ (125,100) Infrastructure as a service - Data Backups 20,000 Time Tracking and Job Costing Planning and Business Analysis 25,000 Application Consulting and Support - Professional Services 30,000 Infrastructure as a Service 75,000 Office/Service Delivery Optimization Design 75,000 Buildings & Facilities Master Plan (Design/Studies) 75,000 Cybersecurity Development Initiatives 108,000 Strategic Building Asset Renewal Study 170,000 Corporate Total $ 452,900

Economic Vitality Guard Icon Renewal $ 5,000 Signage 15,000 Fredericton Tourism Website Development 15,000 Video Archive & Digital Development 15,000 Garrison Infrastructure 20,000 Festival Infrastructure (small portable stage for special events) 20,000 Digital Asset Development (Econ. Dev., Tourism, Culture) 20,000 Plan Implementation/Investigations 50,000 Plan Development 250,000 Economic Vitality Total $ 410,000

Environmental Stewardship Engineering Investigations & Design $ 350,000

Environmental Stewardship Total $ 350,000 38

NON-TANGIBLE CAPITAL – CONTINUED

Livable Community Public Art $ 30,000 Cricket Field Needs Assessment 30,000 Field House Feasibility Study 50,000 Cultural Plan Implementation 60,000 Recreation Equipment Renewal 120,000 Recreation and Parks Master Plan 145,000 Park Plan Detailed Engineering Design 200,000 Livable Community Total $ 635,000

Mobility Stop Sign Replacement $ 8,000 Engineering - Police Traffic Education 10,000 Bridge Inspection 10,000 Transportation Investigations & Design 150,000 Mobility Total $ 178,000

Public Safety PPE (Fentanyl Kits, Narcan & Celox) $ 6,500 Fire Hose 15,000 Fire Prevention Education - Tools Development 15,000 Tasers/Cartridges 20,000 Patrols Carbine Ammunition 22,000 Emergency Response Equipment 42,000 FPF Licenses 61,350

Public Safety Total $ 181,850

2021

2021 GRANTS

2021 GRANTS AND CONTRIBUTIONS

Grants and Contributions 2020 2021 Summary Approved Proposed Strategic Partner Capital Grants $ 264,308 $ 300,000 Community Grants 265,000 270,000 Arts, Heritage and Culture Grants 78,500 78,500 Major Events 100,000 100,000 Sport Tourism 55,000 55,000 Subtotal - Grants $ 762,808 $ 803,500

On-going contributons: Fredericton Playhouse Inc. (Note 1) $ 535,600 $ 535,600 Fredericton Public Library (Note 1) 105,195 105,195 Total - Grants and Contributions $ 1,403,603 $ 1,444,295 Note 1. This is direct grant funding and does not include the City's cost of building capital and maintenance.

2021 APPROVED STRATEGIC PARTNER CAPITAL GRANTS SUMMARY

Strategic Partner Capital Grants 2020 2021 Strategic Partner Capital Grants Approved Proposed Beaverbrook Art Gallery Capital Campaign $1,000,000 total [20 year commitment 2012 - 2031 at $50,000/year] 50,000 50,000 UNB - "Forging our Futures" $1,500,000 total (15 year commitment 2009- 2023 - $100,000/year) 100,000 100,000 Capital Winter Club - $250,000 total [4 year commitment 2019-2022] ($40,000, $60,000, $75,000 for 2021-2022) 60,000 75,000 Charlotte Street Arts Centre - $250,000 total [5 year commitment 2016- 2020] ($90,000 in 2016; $50,000 2017-2019; $10,000 in 2020) 10,000 - Theatre New Brunswick - $49,308 total [2 year commitment 2019-2020] ($24,308, $25,000) 25,000 - Science East [Second 1 year commitment] (2020 - $19,308 + 2021 - $30,000) 19,308 30,000 Fredericton Loyalist Rugby Club [1 year commitment] - 14,600 United Way Centraide [1 year commitment] - 26,900 Branch Out Productions [1 year commitment] - 3,500

Total - Strategic Partner Capital Grants 264,308 300,000

2021 APPROVED COMMUNITY FUNDING SUMMARY

Community Grants 2020 2021 Community Grants Approved Proposed Fredericton Civic Pride Committee (Canada Day) * 37,500 44,000 Harvest Jazz & Blues Festival* 45,000 45,000 Multicultural Association 6,000 5,000 NB African Association/Star Light Entertainment Assoc. 4,500 4,500 NB Highland Games & Scottish Festival* 21,500 21,500 Shivering Songs (Capital Arts Support)* 6,500 5,000 The Notable Arts Theatre Company 4,500 4,500 NBEX* 12,500 12,500 Flourish Festival - 5,000 Fierté F'ton Pride Festival - 5,000 Subtotal - Festivals 138,000 152,000 Ambassadorship Grant / Travelling Athlete 2,000 - Bard in the Barracks 6,500 6,500 Beaverbrook Art Gallery 27,500 27,500 Centre Communautaire Sainte-Anne 4,000 8,000 Christ Church Cathedral 6,000 - Fredericton Outdoor Summer Theater (FROST) 7,000 7,000 NB Youth Orchestra (Sistema NB) 22,000 22,000 Science East 21,000 21,000 York Sunbury Historical Society/Museum 26,000 26,000 Estey Art 5,000 - Subtotal - Other 127,000 118,000 Total - Community Grants 265,000 270,000

* - Additional supplemental funding from the Sustainability Festival fund.

2021

2021 REVENUE

2021 GENERAL REVENUE

GENERAL FUND BUDGET DOLLAR – WHERE IT COMES FROM

* Includes City related entities (FCC, NewMarket, eNovations) surplus', not available for City use

SUMMARY OF REVENUE CHANGES Proposed % Of Description 2020 Budget % Change 2021 Budget Budget Revenue Warrant for Property Taxes $ 110,537,926 108,183,452 2.18% 88.4% Community Funding and Equalization Grant $ 2,026,188 1,890,636 7.17% 1.6% Federal Payment in Lieu of Taxes $ 11,627 1,742 567.45% 0.0% Non-Tax Revenue $ 10,900,383 12,314,281 -11.48% 8.7% Revenue from Reserves $ 1,627,115 - N/A 1.3% Second Previous Years Surplus * $ - 1,988,495 -100.00% 0.0% Total Revenue $ 125,103,239 124,378,606 0.58% * Includes City related entities (FCC, NewMarket, eNovations) surplus', not available for City use

CITY OF FREDERICTON

7.90% 8.00% 7.60% 6.98% 6.56%

6.00% 5.03% 5.15%

4.00% 3.51% 3.29% 3.34% 2.86% 2.74% 2.76% 2.13% 2.00% 1.36% 1.34%

0.58%

0.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2021 REVENUE CHANGES

Approved Proposed Description $ Change % Change Variance Explanation 2020 Budget 2021 Budget Interest on Investments 175,000 225,000 50,000 29% Increase resulting from improved cash management Interest On Past Due Accounts 4,500 4,500 - 0% Credit Card Cash Back 50,000 55,000 5,000 10% Increase in cash back based on usage Financial Management Total 229,500 284,500 55,000 Municipal By-Law Fines 450,440 363,420 (87,020) -19% Down as a result of less parking in the downtown due to COVID-19 Core Area Meters 665,000 420,000 (245,000) -37% Down as a result of less parking in the downtown due to COVID-19 Tannery Parking Lot 31,000 29,000 (2,000) -6% Down as a result of less parking in the downtown due to COVID-19 Queen St. Lot (Cor. Queen & Westmorland) 53,000 43,000 (10,000) -19% Down as a result of less parking in the downtown due to COVID-19 Officers Square - Monthly Permits 16,000 4,000 (12,000) -75% Down as a result of less parking in the downtown due to COVID-19 Officers Square - Daily Receipts 46,000 39,000 (7,000) -15% Down as a result of less parking in the downtown due to COVID-19 Upper Queen (Lofood/Legion) 33,391 - (33,391) -100% Switched to Employee Only Parking Isaac's Way Lot 22,000 16,360 (5,640) -26% Down as a result of less parking in the downtown due to COVID-19 York St. - Monthly Passes 51,600 47,376 (4,224) -8% Down due to lower pass sales due to COVID-19 York St. - Daily Receipts 250,000 201,000 (49,000) -20% Down as a result of less parking in the downtown due to COVID-19 Frederick Square - Monthly Passes 302,609 243,800 (58,809) -19% Down due to lower pass sales due to COVID-19 Frederick Square - Daily Receipts 118,000 52,000 (66,000) -56% Down as a result of less parking in the downtown due to COVID-19 East End Garage - Monthly Passes 269,217 233,000 (36,217) -13% Down due to lower pass sales due to COVID-19 East End Garage - Daily Receipts 255,000 166,000 (89,000) -35% Down as a result of less parking in the downtown due to COVID-19 Parking Management Total 2,563,257 1,857,956 (705,301) Library Room Rental 1,500 500 (1,000) -67% To adjust to actual based on COVID restrictions Photocopier Recovery 6,800 5,800 (1,000) -15% To adjust to actual based on usage Cultural Development Total 8,300 6,300 (1,000) Development Fees 78,000 78,000 - 0% Development Approval Total 78,000 78,000 - NYC Revenue 24,000 19,200 (4,800) -20% Less revenue due to restrictions as a result of COVID-19 Indoor Pool - Program 167,117 133,694 (33,423) -20% Less revenue due to restrictions as a result of COVID-19 Indoor Pool - General Admissions 96,930 77,544 (19,386) -20% Less revenue due to restrictions as a result of COVID-19 Leisure and Recreation Development and Delivery Total 288,047 230,438 (57,609)

Approved Proposed Description $ Change % Change Variance Explanation 2020 Budget 2021 Budget Community Facilities 11,500 5,750 (5,750) -50% Less revenue due to restrictions as a result of COVID-19 Community Facilities - O'Dell Lodge 19,855 9,928 (9,927) -50% Less revenue due to restrictions as a result of COVID-19 Com Fac - Small Craft Aquatic Center 2,000 2,000 - 0% Community Schools 113,100 56,550 (56,550) -50% Less revenue due to restrictions as a result of COVID-19 Killarney Lake Rotary Lodge 48,110 24,055 (24,055) -50% Less revenue due to restrictions as a result of COVID-19 Based on increased assessments in the catchment area as well as the inclusion Outside User Fees (Arenas) 566,499 585,499 19,000 3% of Ludford Subdivision ATM Revenue 7,500 3,750 (3,750) 0% Less revenue anticipated due to facility restrictions

Ice Rental - Lady Beaverbrook Rink 228,358 182,598 (45,760) -20% Less revenue partially due to demand and need for sanitization between groups

Arena Infrastructure Fees ($10./hr ice rental) 16,430 13,121 (3,309) -20% Less revenue partially due to demand and need for sanitization between groups

Ice Rental - York Arena 150,540 120,170 (30,370) -20% Less revenue partially due to demand and need for sanitization between groups

Arena Infrastructure Fees ($10./hr ice rental) 10,860 8,660 (2,200) -20% Less revenue partially due to demand and need for sanitization between groups Canteen Rental - Willie O'Ree Place 6,000 - (6,000) -100% It is not anticipated that this amount will be realized in 2021

Ice Rental - Willie O'Ree Place 438,165 349,065 (89,100) -20% Less revenue partially due to demand and need for sanitization between groups Building Rentals - Willie O'Ree Place 8,500 6,800 (1,700) -20% Less demand due to restrictions of COVID-19 Community Room Rentals - Willie O'Ree Place 14,339 4,780 (9,559) -67% Less demand due to restrictions of COVID-19 Advertising Revenue - Willie O'Ree Place 5,000 - (5,000) -100% It is not anticipated that this amount will be realized in 2021 YMCA Lease Agreement - Willie O'Ree Place 28,000 28,000 - 0%

Arena Infrastructure Fees ($10./hr ice rental) 32,560 25,910 (6,650) -20% Less revenue partially due to demand and need for sanitization between groups Canteen Rental - Grant*Harvey 3,500 - (3,500) -100% It is not anticipated that this amount will be realized in 2021

Ice Rental - Grant*Harvey 384,435 307,440 (76,995) -20% Less revenue partially due to demand and need for sanitization between groups Pouring Rights 16,000 - (16,000) -100% It is not anticipated that this amount will be realized in 2021 Community Room Rentals - Grant•Harvey Centre 6,200 2,067 (4,133) -67% Less demand due to restrictions of COVID-19 Advertising Revenue 18,000 - (18,000) -100% It is not anticipated that this amount will be realized in 2021

Arena Infrastructure Fees ($10./hr ice rental) 29,340 23,485 (5,855) -20% Less revenue partially due to demand and need for sanitization between groups Less demand due to restrictions of COVID-19, includes rate increase for Royals Sports field Fees 61,824 30,912 (30,912) -50% Field Scotiabank Park North/South Naming Rights 150,000 - (150,000) -100% Agreement is final and has not been renewed Turf Fields 85,764 42,882 (42,882) -50% Less demand due to restrictions of COVID-19 Recreation Facility Scheduling Total 2,462,379 1,833,422 (628,957)

Approved Proposed Description $ Change % Change Variance Explanation 2020 Budget 2021 Budget Transit Charters 25,000 - (25,000) -100% Proposal to stop providing the service to focus on core service Chartered Busing Total 25,000 - (25,000) ParaTransit 32,000 18,000 (14,000) -44% Less demand due to restrictions of COVID-19 ParaTransit Total 32,000 18,000 (14,000) Transit Fareboxes 480,000 240,000 (240,000) -50% Lower demand for service due to COVID-19 Transit Pass Sales 640,000 360,000 (280,000) -44% Lower demand for service due to COVID-19 Transit Advertising 125,000 125,000 - 0% Transit Rider cards 405,000 360,000 (45,000) -11% Lower demand for service due to COVID-19 STU U-Pass Program 260,300 260,300 - 0% Based on agreement UNB Grad Student U-Pass Program 100,750 105,300 4,550 5% Based on agreement NBCCD U-Pass Program 30,000 30,000 - N/A Based on agreement Fixed Route Scheduled Transit Total 2,041,050 1,480,600 (560,450) Roads and Streets - Provincial Routes 355,314 368,800 13,486 4% Based on rates provided by PNB Maintenance of Westmorland Street Bridge 54,641 54,641 - 0% Roadway Management Total 409,955 423,441 13,486 Operators 14,000 14,000 - 0% Taxi Industry Regulation Total 14,000 14,000 - 911 Dispatch 64,000 361,515 297,515 465% Based on new agreements and anticipated increase in service provision Regional Fire Dispatch 527,138 498,577 (28,561) -5% Based on agreement 911 PSAP Contract 539,768 549,454 9,686 2% Based on agreement Public Safety Service Request Management Total 1,130,906 1,409,546 278,640 Dog Tags 10,000 10,000 - 0% Impoundment Fees 1,500 1,500 - 0% Animal Registration & Control Total 11,500 11,500 - Plumbing Inspection Fees 110,000 130,000 20,000 18% Based on anticipated construction Building Permits 880,000 1,040,000 160,000 18% Based on anticipated construction value ($130 million) Review of Property Files for Legal 17,000 17,000 - 0% Building Construction Permission & Enforcement Total 1,007,000 1,187,000 180,000 Municipal By-Law Fines 26,000 26,000 - 0% By-law Enforcement Total 26,000 26,000 -

Approved Proposed Description $ Change % Change Variance Explanation 2020 Budget 2021 Budget St. Mary's First Nation Fire Services 286,901 288,678 1,777 1% Based on Previous Agreement - new agreement to be negotiated Fire (To LSD's) 925,240 971,085 45,845 5% Based on agreement Fire Prevention Revenue 5,000 - (5,000) -100% Haz Mat Supplies Recovery 107,000 100,633 (6,367) -6% Based on agreement Fire Emergency Incident Mitigation Total 1,324,141 1,360,396 36,255 Fingerprinting (Police) 4,000 4,000 - 0% Security Clearance 66,000 66,000 - 0% Police Incident Prevention Total 70,000 70,000 - Sale Of Unclaimed Goods 2,000 2,000 - 0% False Alarms (Police) 7,000 7,000 - 0% Saint Mary's First Nation Policing Recovery 583,246 599,284 16,038 3% Based on Proposed Agreement Police Incident Response Total 592,246 608,284 16,038 Business 1,000 1,000 - 0% Municipal Licensing Total 1,000 1,000 - Property Tax Revenue 108,183,452 110,537,926 2,354,474 2.18% Based on property tax assessment base increase of 2.18% Community Funding and Equalization (Unconditional) Grant 1,890,636 2,026,188 135,552 7.17% Adjustment to base funding Payment in Lieu of Taxes (Federal) 1,742 11,627 9,885 567.45% Adjustment to actual Payment In Lieu Taxes paid by the Federal Government Revenue from Reserves - 1,627,115 1,627,115 N/A To cover off 2019 accounting adjustment for salary accrual Due to accounting adjustment (line above) there was no surplus to record from Consolidated Surplus (2nd Previous Year) 1,988,495 - (1,988,495) -100.00% the 2019 budget year General Revenue Total 112,064,325 114,202,856 2,138,531 Total General Fund Revenue 124,378,606 125,103,239 724,633 0.58%

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2021 NON-TAX REVENUE RATE CHANGES

Last Proposed Revenue Description 2020 Increase 2021 Impact Royals Field Cost per Game 2020 $43.20 $51.84 $ 500 Frederick Square Garage Monthly Permit Fee * 2020 $100.00 $120.00 East End Garage Monthly Permit Fee * 2020 $120.00 $130.00 $ 86,417 York Parking Lot Monthly Permit Fee * 2020 $115.00 $120.00 Officer's Square Parking Lot Monthly Permit Fee * 2020 $115.00 $120.00

Net Budget Impact $ 86,917

* Effective February 1, 2021 , remaining rate is effective January 1, 2021

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2021 COMMUNITY FUNDING EQUALIZATION GRANT AS % OF BUDGET

2021 COMMUNITY FUNDING EQUALIZATION GRANT

City of Fredericton Community Funding & Equalization (Unconditional) Grant 2000 - 2021 $7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

2021 COMMUNITY FUNDING EQUALIZATION GRANT TREND COMMUNITY GRANT AS GROSS FUNDING & % OF YEAR BUDGET EQUALIZATION GROSS GRANT BUDGET 2001 55,827,789 6,211,671 11.13% 2002 57,468,529 6,211,671 10.81% 2003 59,045,135 6,211,671 10.52% 2004 62,969,186 5,590,504 8.88% 2005 67,028,170 5,590,504 8.34% 2006 71,424,779 5,590,504 7.83% 2007 77,064,425 5,702,314 7.40% 2008 82,445,566 5,816,360 7.05% 2009 88,708,301 5,816,360 6.56% 2010 93,173,545 5,816,360 6.24% 2011 97,972,486 5,758,196 5.88% 2012 101,565,122 5,643,032 5.56% 2013 104,094,373 4,294,351 4.13% 2014 106,313,245 2,994,192 2.82% 2015 108,560,122 1,713,004 1.58% 2016 111,747,186 1,756,295 1.57% 2017 113,158,309 1,800,174 1.59% 2018 116,918,458 1,821,738 1.56% 2019 120,165,415 1,832,790 1.53% 2020 124,378,606 1,890,636 1.52% 2021 125,103,239 2,026,188 1.62%

2021 UNCONDITIONAL GRANT COMPARISON BETWEEN CITIES

2019 - 2021 UNCONDITIONAL GRANT COMPARISON BETWEEN CITIES

3 CITIES COMMUNITY FUNDING EQUALIZATION GRANT PER CAPITA COMPARISON

2021 EXPLANATION OF COMMUNITY FUNDING & EQUALIZATION GRANT PROVINCE OF NEW BRUNSWICK COMMUNITY FUNDING & EQUALIZATION GRANT

Two components:

1. Core Funding 2. Equalization

The City of Fredericton received $2,026,188 in Core Funding and zero from Equalization.

Approved 2020 Proposed 2021 Description $ Change % Change Budget Budget Community Funding and Equalization (Unconditional Grant) (1,890,636) (2,026,188) (135,552) 7%

THE CORE FUNDING COMPONENT

In 2021, $13,920,152 was distributed based on proportion of non-residential tax base (16 cents). This amount was not tied to expenditure need or capacity, provides funding to all municipalities and supports urban areas. The principles addressed are predictability, stability, simplicity, neutrality and accountability. Fredericton received $2,026,188 of the Core Funding component.

THE EQUALIZATION COMPONENT

In 2021, the pool is set at $53,233,426. This amount is tied to expenditure need and fiscal capacity. The principles addressed are equity, flexibility, neutrality, stability* and predictability*. *Predictability and stability of the total funding level and formula for allocation

Fredericton received zero ($0) from the equalization component.

THE EQUALIZATION COMPONENT – ELEMENTS

• Groups of Municipalities • Fredericton is in Group A with Moncton and Saint John • Fredericton gets $0 • Moncton gets $317,992 • Saint John gets $15.61 Million • Standard Expenditure • Density Adjustment (based on population/road km) • Equalization requirement (supposed to help maintain stable/average tax rate, etc.) • Policing Adjustment for municipalities under the Provincial policing services agreement (PPSA) • (N/A for Cities)  Adjustment for available funding

THE EQUALIZATION COMPONENT – STANDARD EXPENDITURE

• Certain costs removed from net budget to avoid double equalization and to control for neutrality: • Environmental Development Services (includes land use planning, economic development and tourism) • Cost of Assessment • Water Cost Transfer

2021 GFEG FOR NB CITIES

Local Governments 2020 Tax Base 2021 Tax Base 2020-2021 Core Funding Equalization Total Grant Growth (Loss) Component Component BATHURST 1,079,066,793 1,089,068,040 10,001,247 298,723 3,305,126 3,603,849 CAMPBELLTON 601,598,450 610,097,250 8,498,800 85,677 1,760,614 1,846,291 DIEPPE 3,272,404,203 3,296,950,850 24,546,647 1,175,639 - 1,175,639 EDMUNSTON 1,450,782,700 1,462,643,600 11,860,900 357,189 5,084,353 5,441,542 FREDERICTON 7,601,756,637 7,767,217,647 165,461,010 2,026,188 - 2,026,188 MIRAMICHI 1,541,422,300 1,548,308,600 6,886,300 428,874 5,795,825 6,224,699 MONCTON 8,712,175,550 8,862,057,654 149,882,104 3,271,500 317,992 3,589,492 SAINT JOHN 7,050,026,572 7,058,298,819 8,272,247 2,619,998 15,609,404 18,229,402

TOTAL 31,309,233,205 31,694,642,460 385,409,255 10,263,788 31,873,314 42,137,102

Source: PNB website https://www2.gnb.ca/content/gnb/en/news/news_release.2019.11.0604.html

News Release

Environment and Local Government

COMMUNITY FUNDING AND EQUALIZATION GRANTS ANNOUNCED FOR 2021

06 October 2020

FREDERICTON (GNB) – Local governments and local service districts will receive more than $75.9 million in community funding and equalization grants from the provincial government in 2021 to support their service needs and priorities.

“We are providing this valuable information early because we are keenly aware that local governments are relying on this information during their budget process,” said Local Government and Local Governance Reform Minister Daniel Allain. “Property owners have started receiving their assessment notices so we are pleased we could turn that information around for local governments in a timely manner.”

Local governments will have a core funding component of $13.9 million with an equalization component of $53.2 million.

Local service districts will receive core funding of almost $2.6 million and a police equalization component of almost $4.4 million.

The community funding and equalization grant formula also includes a calculation for policing costs for local governments served by the RCMP under the Provincial Police Service Agreement.

“We are looking forward to working with communities as we embark on local governance reform,” said Allain. “Focusing on our regions and their priorities will be a cornerstone of our approach.”

The list of Community Funding and Equalization Grants for municipalities and rural communities, and the list of municipal tax bases are available online.

Most property owners received their property assessment notice for 2021 on Oct. 1. These assessments will now be issued separately from their property tax (bills) notices.

2021

[PROPERTY TAX INFORMATION] City of Fredericton property tax base information for 2021 including historical comparison of the tax base and property tax rate, the formula for calculating the tax rate, and the estimated average tax bill increase. Includes information from Service New Brunswick on the 2021 Municipal and Rural Community Funding and Equalization Grant and Tax Base. Business Improvement Area tax rate and budget are provided. CONTENTS 2021 General Fund Revenue ...... 62 Property Tax Base Growth ...... 63 Tax Base Increase Breakdown by Market Assessment and New Construction ...... 64 Growth in the Property Tax Base ...... 65 Market Assessments Compared to NB CPI ...... 65 Market Assessment Vs. new Construction Increase ...... 66 Property Tax Base (Assessment) ...... 67 City of Fredericton – 2021 Financial Information ...... 68 Comparative Data for Warrant to be Raised by Tax Rate ...... 69 Tax Base for Rate (Inside and Outside) ...... 70 Formula For Calculation of Tax Rate 2021 ...... 71 Tax Rates 2011 – 2021 ...... 72 This page has been left blank intentionally ...... 73 2021 Property Tax Rates ...... 74 2021 Estimated Average Property Tax Bill ...... 75 SNB Assessments and Tax Base ...... 76 Downtown Fredericton Inc. 2021 Budget ...... 84 Business Fredericton North 2021 Budget ...... 85

2021 GENERAL FUND REVENUE WHERE THE MONEY COMES FROM

Residential Property Tax $ 66,955,707 53.5% Non-Residential Property Tax (Commercial) $ 43,582,219 34.8% Unconditional Grant $ 2,026,188 1.6% User Charges, Licenses, Fees, Fines & Other $ 12,539,125 10.0% $ 125,103,239 62

PROPERTY TAX BASE GROWTH

TAX BASE CITY OF FREDERICTON Property Tax Base Growth Year Tax Base % Change % Change 1990 2,273,085,650 11.61% 1991 2,477,563,200 9.00% 1992 2,606,858,150 5.22% 10.00% 1993 2,665,513,350 2.25% 1994 2,691,196,600 0.96% 9.00% 1995 2,760,830,500 2.59% 8.48% 8.56% 1996 2,796,200,150 1.28% 7.92% 1997 2,841,290,850 1.61% 8.00% 7.67% 1998 2,922,028,500 2.84% 7.28% 6.96% 1999 2,980,024,100 1.98% 7.00% 2000 3,067,724,255 2.94% 2001 3,138,633,450 2.31% 2002 3,228,429,489 2.86% 6.00% 2003 3,345,073,426 3.61% 5.43% 2004 3,628,724,282 8.48% 4.88%4.88%4.95% 5.00% 2005 3,906,904,494 7.67% 2006 4,178,933,263 6.96% 4.09% 3.85% 2007 4,536,560,139 8.56% 4.00% 3.61% 2008 4,866,745,536 7.28% 3.12% 2009 5,252,355,062 7.92% 2.84% 2.94% 2.86% 3.00% 2.70% 2010 5,537,706,643 5.43% 2.31% 2011 5,807,716,114 4.88% 2.14% 2.18% 1.98% 2012 6,091,366,212 4.88% 2.00% 1.69% 2013 6,392,645,032 4.95% 1.38% 2014 6,638,900,004 3.85% 2015 6,818,360,822 2.70% 1.00% 2016 6,933,624,190 1.69% 2017 7,029,225,653 1.38% 0.00% 2018 7,082,276,288 2.14% 2019 7,303,077,073 3.12% 2020 7,601,756,637 4.09% 2021 7,767,217,647 2.18%

TAX BASE INCREASE BREAKDOWN BY MARKET ASSESSMENT AND NEW CONSTRUCTION

GROWTH IN THE PROPERTY TAX BASE

MARKET ASSESSMENTS COMPARED TO NB CPI

MARKET ASSESSMENT VS. NEW CONSTRUCTION INCREASE

CITY OF FREDERICTON INSIDE & OUTSIDE TAX BASE FOR RATE MARKET ASSESSMENT VS. NEW CONSTRUCTION INCREASE RESIDENTIAL VS. NON-RESIDENTIAL ASSESSMENT CHANGES

2020 2021 Difference % Difference

General Residential Property $ 4,508,559,200 $ 4,704,806,500 $ 196,247,300 4.35% Provincial Residential Property 889,975,800 899,850,000 9,874,200 1.11% Federal Residential Property 3,551,000 3,742,500 191,500 5.39% Non-Provincial Rate Residential Property 34,394,600 34,966,700 572,100 1.66% Total Residential $ 5,436,480,600 $ 5,643,365,700 $ 206,885,100 3.81%

General Non-Residential $ 1,815,352,950 $ 1,789,161,300 $ (26,191,650) -1.44% Provincial Non-Residential 297,111,150 281,505,150 (15,606,000) -5.25% Federal Non-Residential 52,605,837 52,975,047 369,210 0.70% Non-Provincial Non-Residential 206,100 210,450 4,350 2.11%

Total Non-Residential $ 2,165,276,037 $ 2,123,851,947 $ (41,424,090) -1.91%

Total Inside & Outside Tax Base for Rate $ 7,601,756,637 $ 7,767,217,647 $ 165,461,010 2.18%

Overall Total % of Overall Description Amount Total Increase % of Total % Increase Increase Market Value Adjustments $56,556,860 165,461,010 34% 2.18% 0.74% New Construction 95,941,300 165,461,010 66% 2.18% 1.44% Total Tax Base Increase $152,498,160 100.00% 2.18%

PROPERTY TAX BASE (ASSESSMENT) BREAKDOWN FOR PERIOD 2004 – 2021

CITY OF FREDERICTON PROPERTY TAX BASE (ASSESSMENT) Breakdown for Period 2003 - 2021

RESIDENTIAL % NON-RESIDENTIAL % TOTAL TOTAL TOTAL YEAR TAX BASE CHANGE TAX BASE CHANGE TAX BASE % CHANGE $ CHANGE 2004 $2,495,808,400 10.49% $1,132,915,882 4.31% $3,628,724,282 8.48% $283,650,856 2005 $2,697,296,994 8.07% $1,209,607,500 6.77% $3,906,904,494 7.67% $278,180,212 2006 $2,928,464,300 8.57% $1,250,468,963 3.38% $4,178,933,263 6.96% $272,028,769 2007 $3,216,338,000 9.83% $1,320,222,139 5.58% $4,536,560,139 8.56% $357,626,876 2008 $3,475,188,000 8.05% $1,391,557,536 5.40% $4,866,745,536 7.28% $330,185,397 2009 $3,730,235,200 7.34% $1,522,119,862 9.38% $5,252,355,062 7.92% $385,609,526 2010 $3,971,226,500 6.46% $1,566,480,143 2.91% $5,537,706,643 5.43% $285,351,581 2011 $4,192,356,500 5.57% $1,615,359,614 3.12% $5,807,716,114 4.88% $270,009,471 2012 $4,386,572,900 4.63% $1,704,793,312 5.54% $6,091,366,212 4.88% $283,650,098 2013 $4,595,310,800 4.76% $1,797,334,232 5.43% $6,392,645,032 4.95% $301,278,820 2014 $4,840,957,200 5.35% $1,797,942,804 0.03% $6,638,900,004 3.85% $246,254,972 2015 $4,939,551,100 2.04% $1,878,809,722 4.50% $6,818,360,822 2.70% $179,460,818 2016 $4,998,560,200 1.19% $1,935,063,990 2.99% $6,933,624,190 1.69% $115,263,368 2017 $5,074,139,200 1.51% $1,955,086,453 1.03% $7,029,225,653 1.38% $95,601,463 2018 $5,128,020,340 2.59% $1,954,255,948 0.99% $7,082,276,288 2.14% $148,652,098 2019 $5,283,288,975 4.12% $2,019,788,098 3.31% $7,303,077,073 3.90% $273,851,420 2020 $5,436,480,600 2.90% $2,165,276,037 7.20% $7,601,756,637 4.09% $519,480,349 2021 $5,643,365,700 3.81% $2,123,851,947 (1.91%) $7,767,217,647 2.18% $464,140,574 *The above figures include the Federal Grant-in-Lieu property assessments from 1997 onward. 2021 Summary Residential Tax Base Increase $206,885,100 Non-Residential Tax Base Increase ($41,424,090) Total Tax Base Increase $165,461,010 67

CITY OF FREDERICTON – 2021 FINANCIAL INFORMATION CITY OF FREDERICTON FINANCIAL INFORMATION FOR 2021

2020 2021 Variance Change Unconditional Grant $ 1,890,636 $ 2,026,188 $ 135,552 7.17% Non-tax Revenue including FPILT $ 14,304,518 $ 12,539,125 $ (1,765,393) (12.34)% Tax Base $ 7,601,756,637 $ 7,601,756,637 $ - 0.00% Expenditures $ 124,378,606 $ 125,103,239 $ 724,633 0.58%

Revenues: Unconditional Grant $ 1,890,636 $ 2,026,188 $ 135,552 7.17% Non-tax $ 14,304,518 $ 12,539,125 $ (1,765,393) (12.34)% Warrant $ 108,183,452 $ 110,537,926 $ 2,354,474 2.18%

Total Revenues $ 124,378,606 $ 125,103,239 $ 724,633 0.58%

Total Expenditures $ 124,378,606 $ 125,103,239 $ 724,633 0.58%

Property Tax Base (Combined) $ 7,601,756,637 $ 7,767,217,647 $ 165,461,010 2.18%

Inside Tax Base 7,433,024,337 7,594,292,647 $ 161,268,310 2.17% Inside Rate 1.4311 1.4311 0.00002

Outside Tax Base 168,732,300 172,925,000 $ 4,192,700 2.48% Outside Rate $ 1.0733 $ 1.0733 (0.00001)

Tax Rate (Combined) $ 1.4231 $ 1.4231 (0.0000)

2020 2021 Inside Warrant 106,372,433 108,681,922 Outside Warrant 1,811,019 1,856,004 108,183,452 110,537,926 68

COMPARATIVE DATA FOR WARRANT TO BE RAISED BY TAX RATE

CITY OF FREDERICTON 2021 BUDGET Comparative Data for Warrant to be Raised by Tax Rate

2020 2021 Variance $ Variance Gross Expenditures $124,378,606 $125,103,239 $724,633 0.58% Less Non-Tax Revenue (including FPILT) 14,304,518 12,539,125 -1,765,393 (12.34%) Net Budget $110,074,088 $112,564,114 $2,490,026 2.26% Less Unconditional Transfer 1,890,636 2,026,188 135,552 7.17% Warrant to be Raised by a Local Rate $108,183,452 $110,537,926 $2,354,474 2.18%

REVENUES Community Funding and Equalization Grant $1,890,636 $2,026,188 135,552 7.17% Non-Tax Revenue (including FPILT) 14,304,518 12,539,125 (1,765,393) (12.34%) Warrant 108,183,452 110,537,926 2,354,474 2.18% Total Revenues $124,378,606 $125,103,239 $724,633 0.58%

Property Tax Base for Rate (Inside) $7,433,024,337 $7,594,292,647 $161,268,310 2.17% Property Tax Base for Rate (Outside) 168,732,300 172,925,000 4,192,700 2.48% Total Tax Base $7,303,077,073 $7,767,217,647 $165,461,010 6.36%

Property Tax Rate (Inside) $1.4311 $1.4311 $0.0000 Property Tax Rate (Outside) $1.0733 $1.0733 $0.0000

TAX BASE FOR RATE (INSIDE AND OUTSIDE)

The City of Fredericton Tax Base for Rate (Inside and Outside) 2020 2021 Change INSIDE Property Tax Base - Residential $ 5,294,684,100 $ 5,498,174,500 3.84% Property Tax Base - Non-Residential $ 1,442,356,500 $ 1,414,336,500 -1.94% Total Tax Base $ 6,737,040,600 $ 6,912,511,000 2.60% Plus 1/2 Non-Residential $ 721,178,250 $ 707,168,250 Total Municipal Tax Base $ 7,458,218,850 $ 7,619,679,250 2.16% Adjustment to Federal Tax Base ($ 25,194,513) ($ 25,386,603) Tax Base for Rate $ 7,433,024,337 $ 7,594,292,647 2.17% OUTSIDE Property Tax Base - Residential $ 141,796,500 $ 145,191,200 2.39% Property Tax Base - Non-Residential $ 17,957,200 $ 18,489,200 2.96% Total Tax Base $ 159,753,700 $ 163,680,400 2.46% Plus 1/2 Non-Residential $ 8,978,600 $ 9,244,600 Total Municipal Tax Base $ 168,732,300 $ 172,925,000 2.48% Adjustment to Federal Base $ - $ - Tax Base for Rate $ 168,732,300 $ 172,925,000 2.48%

TOTAL TAX BASE FOR RATE $ 7,601,756,637 $ 7,767,217,647 2.18%

Residential Tax Base $ 5,436,480,600 $ 5,643,365,700 3.81% Non-Residential Tax Base $ 2,165,276,037 $ 2,123,851,947 -1.91%

$ 7,601,756,637 $ 7,767,217,647 2.18% 70

FORMULA FOR CALCULATION OF TAX RATE 2021

CITY OF FREDERICTON FORMULA FOR CALCULATION OF TAX RATE 2021

TAX BASE PER DEPARTMENT OF ENVIRONMENT AND LOCAL GOVERNMENT

Inside Tax Base for Rate: $7,594,292,647 Outside Tax Base for Rate: $172,925,000 TOTAL $7,767,217,647

CALCULATION

Step 1 Take 75 % of outside tax base plus inside tax base $7,723,986,397 Step 2 Divide the warrant revenue $110,537,926 by the new tax base calculated in Step 1 1.4311 Step 3 Take 75% of the inside rate calculated in Step 2 1.0733 Multiply the inside tax base by the rate calculated in Step 2 divided by 100 (This is the inside Step 4 warrant revenue) 108,681,922 Multiply the outside tax base by the rate calculated in Step 3 divided by 100 (This is the outside Step 5 warrant revenue) 1,856,004 $110,537,926

SUMMARY

Inside Warrant $108,681,922 Outside Warrant $1,856,004 TOTAL WARRANT $110,537,926

TAX RATES 2011 – 2021

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2021 PROPERTY TAX RATES

2021 PROPERTY TAX RATES NON-RESIDENTIAL (COMMERCIAL) 1). *Inside City Rate 1.4311 x 1.5 = 2.1467 2). (a) Provincial Tax Rate 1.4573 x 1.5 = 2.1860 3). Provincial Tax Rate (Assessment & Collection) 0.0194 4). Subtotal $4.3521 5). Business Improvement Area (BIA) 0.2000 6). Total Provincial Rate (Commercial) $4.5521 NON-OWNER OCCUPIED RESIDENTIAL 1). *Inside City Rate 1.4311 2). (b) Provincial Tax Rate 1.1233 3). Provincial Tax Rate (Assessment & Collection) 0.0194 4). Subtotal $2.5738 5.) Residential Tenancy Administration Fee 0.0486 6). Total Rate - Non-Owner Occupied $2.6224 RESIDENTIAL Inside Outside 1). City Rate $1.4311 $1.0733 2). Provincial Rate 1.1233 1.1233 3). Provincial Rate (Assessment & Collection) 0.0194 0.0194 4). Subtotal 2.5738 2.2160 5). Less Provincial Tax Credit (1.1233) (1.1233) 6). Total Tax Bill $1.4505 $1.0927

NOTES: *City receives the revenue. The 1.5 represents the business tax rate. *The above Property Tax Rates apply to all properties (land & buildings) within the City limits, per $100 of assessment. *Depending on the zoning, the City generally pays the Commercial Property Tax Rate (2 & 3 above). *The City also pays the BIA Rate of 20¢ on some buildings, such as City Hall, Police Station, Convention Centre and Parking Garages. *Residential Tenancy Administration Fee came into effect on 1992 December 11—which is a fee for the cost of the Rentalsman Office. *The combined tax base assessment 2021 over 2020 was increased by 2.18%. *The base used for 2020 to set the Tax Rate was $7,767,217,647 which included Federal properties. NON-RESIDENTIAL TAX RATE: *PNB levies a property tax on non-residential (commercial) property within municipal boundaries. A development in the downtown core pays a total rate of $4.5521. Of that total, the City of Fredericton collects $2.1467, or 49% of the total tax charged. PNB collects the majority of the property tax in the form of the Provincial Tax Rate, i.e. $2.1860 + 0.0194 = $2.205 per $100 of assessment. The BIA levy of 0.20 is a tax imposed upon businesses by themselves through Downtown Fredericton Inc. (a)Using PNB's 2020 rates. There was a 33¢ rate reduction to be phased-in over four years from 2013 - 2016. However, the rate reduced from $2.186 to $2.1035 in 2013; to $2.0210 in 2014; and in 2015, the rate returned to the original 2013 rate of $2.1860; remains unchanged for 2016 - 2021. (b) Using PNB's 2020 rates. There was a 33.4¢ rate reduction phased-in over four years 2013 - 2016, with the rate reduced from $1.4573 to $1.3973 in 2013; to $1.3373 in 2014; to $1.2773 in 2015; to $1.1233 in 2016; remains unchanged for 2017 - 2021.

2021 ESTIMATED AVERAGE PROPERTY TAX BILL

PROPERTY TAX BILL AVERAGE ASSESSMENT INCREASE EXAMPLE Assessed Value Based 2020 Inside Rate @ 2021 Inside Rate @ Assessed 2020 Upon Ave. Market Annual $1.4311 with Ave. Market $1.4311 with Ave. Market Value Assessment Increase of Change Assessment Increase Assessment Increase 2.18% 200,000 $2,862 204,360 $2,925 $62 250,000 $3,578 255,450 $3,656 $78 300,000 $4,293 306,540 $4,387 $94

400,000 $5,724 408,720 $5,849 $125

Cost of Assessment - coût de l'évaluation

Tax Base Cost of Local Government / Gouvernement Local For Rate Assessment 2021 2021 Assiette fiscale Coût de pour le taux l'évaluation

1 Bathurst 1,089,068,040 211,279 2 Campbellton 610,097,250 118,359 3 Dieppe 3,296,950,850 639,608 4 Edmundston 1,462,643,600 283,753 5 Fredericton 7,767,217,647 1,506,840 6 Miramichi 1,548,308,600 300,372 7 Moncton 8,850,253,454 1,716,949 8 Saint John 7,058,298,819 1,369,310

CITY TOTAL / TOTAL DE CITÉ 31,682,838,260 6,146,470

9 Beresford 290,789,000 56,413 10 Bouctouche 221,974,850 43,063 11 Caraquet 394,820,700 76,595 12 Dalhousie 228,847,250 44,396 13 Florenceville-Bristol 225,990,650 43,842 14 Grand Bay-Westfield 388,995,100 75,465 15 Grand-Sault/Grand Falls 558,715,876 108,391 16 Hampton 376,629,950 73,066 17 Hartland 86,390,950 16,760 18 Lamèque 100,265,700 19,452 19 Nackawic 89,428,500 17,349 20 Oromocto 1,241,046,691 240,763 21 Quispamsis 1,850,878,750 359,070 22 Richibucto 112,609,275 21,846 23 Riverview 1,606,161,200 311,595 24 Rothesay 1,371,153,150 266,004 25 Sackville 662,069,250 128,441 26 Saint Andrews 332,488,550 64,503 27 Saint-Léonard 79,586,518 15,440 28 Saint-Quentin 137,003,200 26,579 29 Shediac 723,686,166 140,395 30 Shippagan 243,796,650 47,297 31 St. George 141,389,744 27,430 32 St. Stephen 349,609,600 67,824 33 Sussex 418,199,298 81,131 34 Woodstock 517,352,312 100,366

TOWN TOTAL / TOTAL DE VILLE 12,749,878,880 2,473,476

35 Alma 30,394,800 5,897 36 Aroostook 10,165,900 1,972 37 Atholville 234,056,200 45,407 38 Balmoral 104,134,800 20,202 39 Bas-Caraquet 75,047,050 14,559 40 Bath 22,257,100 4,318 41 Belledune 344,360,650 66,806 42 Bertrand 63,085,100 12,239 43 Blacks Harbour 52,726,400 10,229 44 Blackville 49,973,300 9,695 45 Cambridge-Narrows 96,961,450 18,811 46 Canterbury 13,779,700 2,673 47 Cap-Pelé 216,043,550 41,912 48 Centreville 37,641,950 7,303 49 Charlo 88,562,650 17,181 50 Chipman 70,509,200 13,679 51 Doaktown 58,138,750 11,279 52 Dorchester 59,242,350 11,493 53 Drummond 54,979,600 10,666 54 Eel River Crossing 85,401,500 16,568 55 Fredericton Junction 44,325,950 8,599 56 Gagetown 62,863,500 12,196 57 Grand Manan 210,116,150 40,763 58 Grande-Anse 38,098,150 7,391 59 Harvey 21,139,900 4,101 60 Hillsborough 86,852,050 16,849 61 Lac Baker 65,610,550 12,728 62 Le Goulet 27,157,650 5,269 63 Maisonnette 27,546,950 5,344 64 McAdam 49,779,750 9,657 65 Meductic 14,643,750 2,841 66 Memramcook 332,270,150 64,460 67 Millville 9,806,100 1,902 68 Minto 105,167,150 20,402 69 Neguac 131,422,600 25,496 70 New Maryland 365,674,650 70,941 71 Nigadoo 56,815,100 11,022 72 Norton 80,920,850 15,699 73 Paquetville 53,840,450 10,445 74 Perth-Andover 122,125,300 23,692 75 Petit-Rocher 112,030,900 21,734 76 Petitcodiac 93,054,500 18,053 77 Plaster Rock 60,559,150 11,748 78 Pointe-Verte 45,776,400 8,881 79 Port Elgin 24,787,700 4,809 80 Rexton 87,442,050 16,964 81 Riverside-Albert 22,796,000 4,422 82 Rivière-Verte 40,782,150 7,912 83 Rogersville 57,504,400 11,156 84 Saint-Antoine 114,257,850 22,166 85 Saint-Isidore 50,382,350 9,774 86 Saint-Louis de Kent 61,091,300 11,852 87 Saint-Léolin 21,163,600 4,106 88 Sainte-Anne-de-Madawaska 44,633,500 8,659 89 Sainte-Marie-Saint-Raphaël 34,698,950 6,732 90 Salisbury 184,039,050 35,704 91 St. Martins 22,178,950 4,303 92 Stanley 30,078,200 5,835 93 Sussex Corner 103,221,650 20,025 94 Tide Head 63,006,750 12,223 95 Tracy 26,173,400 5,078

VILLAGE TOTAL / TOTAL DE VILLAGE 4,973,297,500 964,822 Rural Comm. Tax Cost of Rural Community / Communauté rurale Base For Rate Assessment 2021 2021 Assiette fiscale Coût de de comm. rurale l'évaluation pour le taux

1 Beaubassin-est 669,323,800 129,849 2 Campobello Island 98,232,350 19,057 3 Cocagne 220,230,650 42,725 4 Hanwell 546,830,000 106,085 5 Haut-Madawaska 286,550,050 55,591 6 Kedgwick 120,673,050 23,411 7 Saint-André 194,530,500 37,739 8 Upper Miramichi 116,198,400 22,542

TOTAL RURAL COMMUNITY / TOTAL COMMUNAUTÉ RURALE 2,252,568,800 436,999

Reg. Muni. Tax Cost of Regional Municipality / Municipalité Régionale Base For Rate Assessment 2021 2021 Assiette fiscale Coût de de muni. région. l'évaluation pour le taux 1 Tracadie 1,085,805,099 210,646

TOTAL REGIONAL MUNICIPALITY / TOTAL MUNICIPALITÉ RÉGIONALE 1,085,805,099 210,646

TOTAL ALL GROUPS / TOTAL DES GROUPES 52,744,388,539 10,232,413 2021 Tax Bases and Community Funding and Equalization Grant

ALMA 30,008,150 30,394,800 386,650 5,015 0 5,015 AROOSTOOK 10,169,550 10,165,900 (3,650) 337 98,702 99,039 ATHOLVILLE 235,296,700 234,056,200 (1,240,500) N/A N/A 290,668 BALMORAL 102,229,150 104,134,800 1,905,650 8,794 94,956 103,750 BAS-CARAQUET 73,994,600 75,047,050 1,052,450 14,305 142,662 156,967 BATH 22,047,600 22,257,100 209,500 2,647 92,856 95,503 BATHURST 1,079,066,793 1,089,068,040 10,001,247 298,723 3,305,126 3,603,849 BEAUBASSIN -EST 655,293,050 669,323,800 14,030,750 59,106 0 59,106 BELLEDUNE 388,591,000 344,360,650 (44,230,350) 345,829 0 345,829 BERESFORD 288,508,350 290,789,000 2,280,650 47,594 821,042 868,636 BERTRAND 62,026,950 63,085,100 1,058,150 2,820 183,512 186,332 BLACK'S HARBOUR 58,710,000 52,726,400 (5,983,600) 25,520 282,950 308,470 BLACKVILLE 49,918,450 49,973,300 54,850 5,230 194,731 199,961 BOUCTOUCHE 222,999,000 221,974,850 (1,024,150) 56,428 19,890 76,318 CAMBRIDGE-NARROWS 96,433,550 96,961,450 527,900 747 0 747 CAMPBELLTON 601,598,450 610,097,250 8,498,800 85,677 1,760,614 1,846,291 CAMPOBELLO 98,329,000 98,232,350 (96,650) 1,974 0 1,974 CANTERBURY 13,790,150 13,779,700 (10,450) 496 89,943 90,439 CAP PELE 207,962,950 216,043,550 8,080,600 44,559 112,192 156,751 CARAQUET 393,537,650 394,820,700 1,283,050 86,467 918,875 1,005,342 CENTREVILLE 37,196,300 37,641,950 445,650 14,167 19,781 33,948 CHARLO 86,896,150 88,562,650 1,666,500 7,118 83,833 90,951 CHIPMAN 68,803,450 70,509,200 1,705,750 23,496 284,897 308,393 COCAGNE 216,512,350 220,230,650 3,718,300 N/A N/A 8,986 DALHOUSIE 229,194,000 228,847,250 (346,750) 35,594 1,334,484 1,370,078 DIEPPE 3,272,404,203 3,296,950,850 24,546,647 1,175,639 0 1,175,639 DOAKTOWN 57,388,500 58,138,750 750,250 20,491 185,566 206,057 DORCHESTER 59,559,000 59,242,350 (316,650) 35,336 62,958 98,294 DRUMMOND 54,900,750 54,979,600 78,850 4,899 0 4,899 EDMUNDSTON 1,450,782,700 1,462,643,600 11,860,900 357,189 5,084,353 5,441,542 EEL RIVER CROSSING 84,354,600 85,401,500 1,046,900 N/A N/A 394,022 FLORENCEVILLE-BRISTOL 223,537,300 225,990,650 2,453,350 126,763 0 126,763 FREDERICTON 7,601,756,637 7,767,217,647 165,461,010 2,026,188 0 2,026,188 FREDERICTON JUNCTION 42,145,750 44,325,950 2,180,200 1,860 54,898 56,758 GAGETOWN 62,584,800 62,863,500 278,700 2,345 0 2,345 GRAND BAY-WESTFIELD 382,520,350 388,995,100 6,474,750 13,942 587,318 601,260 GRAND FALLS 554,786,400 558,715,876 3,929,476 192,877 619,556 812,433 GRAND MANAN 207,806,800 210,116,150 2,309,350 32,025 240,175 272,200 GRANDE ANSE 37,456,950 38,098,150 641,200 5,867 404,290 410,157 HAMPTON 369,950,800 376,629,950 6,679,150 37,560 165,555 203,115 HANWELL 531,500,000 546,830,000 15,330,000 N/A N/A 43,376 HARTLAND 85,446,400 86,390,950 944,550 31,612 15,422 47,034 HARVEY 20,910,400 21,139,900 229,500 2,366 38,031 40,397 HAUT-MADAWASKA 284,419,150 286,550,050 2,130,900 N/A N/A 184,959 HILLSBOROUGH 86,547,250 86,852,050 304,800 4,392 243,075 247,467 KEDGWICK 120,446,000 120,673,050 227,050 21,844 250,310 272,154 LAC BAKER 64,153,200 65,610,550 1,457,350 1,016 0 1,016 LAMEQUE 98,664,100 100,265,700 1,601,600 25,979 140,412 166,391 LE GOULET 27,168,800 27,157,650 (11,150) 827 224,127 224,954 MAISONNETTE 26,775,550 27,546,950 771,400 2,609 60,198 62,807 MCADAM 50,766,100 49,779,750 (986,350) 10,249 509,658 519,907 MEDUCTIC 14,639,650 14,643,750 4,100 6,459 17,455 23,914 MEMRAMCOOK 324,948,900 332,270,150 7,321,250 20,768 1,036,732 1,057,500 MILLVILLE 9,920,400 9,806,100 (114,300) 187 80,435 80,622 MINTO 105,854,850 105,167,150 (687,700) 16,491 904,357 920,848 MIRAMICHI 1,541,422,300 1,548,308,600 6,886,300 428,874 5,795,825 6,224,699 MONCTON 8,712,175,550 8,862,057,654 149,882,104 3,271,500 317,992 3,589,492 NACKAWIC 93,299,500 89,428,500 (3,871,000) 34,871 11,159 46,030 NEGUAC 129,930,000 131,422,600 1,492,600 25,148 254,966 280,114 NEW MARYLAND 353,014,900 365,674,650 12,659,750 6,604 0 6,604

1 / 2 2021 Tax Bases and Community Funding and Equalization Grant

Assiettes fiscales et Subvention de financement et de péréquation communautaires 2021 2020-2021 Core Funding Equalization Local Government 2020 Tax Base 2021 Tax Base Growth Total Grant Component Component (Loss) ($) ($) Croissance Composante Assiette fiscale Assiette fiscale Composante Subvention Gouvernement local (Perte) financement de 2020 2021 péréquation totale 2020-2021 base NIGADOO 55,394,000 56,815,100 1,421,100 6,784 96,605 103,389 NORTON 78,301,050 80,920,850 2,619,800 4,200 205,177 209,377 OROMOCTO 1,221,435,050 1,241,046,691 19,611,641 576,000 0 576,000 PAQUETVILLE 53,404,550 53,840,450 435,900 9,076 0 9,076 PERTH-ANDOVER 120,002,850 122,125,300 2,122,450 26,358 230,947 257,305 PETITCODIAC 92,473,300 93,054,500 581,200 14,850 307,586 322,436 PETIT-ROCHER 109,897,700 112,030,900 2,133,200 12,098 433,686 445,784 PLASTER ROCK 61,429,500 60,559,150 (870,350) 16,752 294,280 311,032 POINTE-VERTE 44,085,600 45,776,400 1,690,800 1,014 143,213 144,227 PORT ELGIN 25,126,600 24,787,700 (338,900) 5,771 35,395 41,166 QUISPAMSIS 1,800,765,800 1,850,878,750 50,112,950 115,092 0 115,092 REXTON 84,920,500 87,442,050 2,521,550 8,604 0 8,604 RICHIBUCTO 112,602,550 112,609,275 6,725 49,654 53,848 103,502 RIVERSIDE-ALBERT 22,566,800 22,796,000 229,200 893 19,378 20,271 RIVERVIEW 1,561,936,900 1,606,161,200 44,224,300 177,623 2,343,570 2,521,193 RIVIERE-VERTE 40,485,300 40,782,150 296,850 1,829 90,311 92,140 ROGERSVILLE 57,034,550 57,504,400 469,850 7,766 406,763 414,529 ROTHESAY 1,330,037,450 1,371,153,150 41,115,700 131,193 0 131,193 SACKVILLE 657,431,000 662,069,250 4,638,250 81,771 0 81,771 SAINT ANDREWS 328,967,400 332,488,550 3,521,150 62,406 0 62,406 SAINT JOHN 7,050,026,572 7,058,298,819 8,272,247 2,619,998 15,609,404 18,229,402 SAINT LÉONARD 80,009,200 79,586,518 (422,682) 16,400 309,645 326,045 SAINT-ANDRÉ 188,978,350 194,530,500 5,552,150 63,387 0 63,387 SAINT-ANTOINE 113,371,600 114,257,850 886,250 12,615 302,847 315,462 SAINTE-ANNE-DE-MADAWASKA 44,604,600 44,633,500 28,900 2,786 183,164 185,950 SAINTE-MARIE-SAINT-RAPHAËL 34,006,150 34,698,950 692,800 3,250 217,387 220,637 SAINT-ISIDORE 51,280,050 50,382,350 (897,700) 6,473 34,574 41,047 SAINT-LÉOLIN 20,959,800 21,163,600 203,800 146 209,469 209,615 SAINT-LOUIS-DE-KENT 61,104,700 61,091,300 (13,400) 8,478 101,664 110,142 SAINT-QUENTIN 136,251,700 137,003,200 751,500 21,133 396,892 418,025 SALISBURY 181,064,150 184,039,050 2,974,900 36,972 159,722 196,694 SHEDIAC 709,243,100 723,686,166 14,443,066 157,286 408,924 566,210 SHIPPAGAN 242,721,900 243,796,650 1,074,750 46,838 398,551 445,389 ST. GEORGE 139,243,600 141,389,744 2,146,144 41,681 82,920 124,601 ST. MARTINS 22,316,000 22,178,950 (137,050) 1,975 0 1,975 ST. STEPHEN 341,926,900 349,609,600 7,682,700 110,556 1,356,431 1,466,987 STANLEY 30,161,150 30,078,200 (82,950) 3,556 6,776 10,332 SUSSEX 420,413,200 418,199,298 (2,213,902) 151,773 463,606 615,379 SUSSEX CORNER 102,652,500 103,221,650 569,150 14,570 24,940 39,510 TIDE HEAD 61,360,950 63,006,750 1,645,800 1,239 31,963 33,202 TRACADIE 1,069,537,800 1,085,805,099 16,267,299 N/A N/A 883,414 TRACY 25,877,750 26,173,400 295,650 972 143,232 144,204 UPPER MIRAMICHI 116,617,500 116,198,400 (419,100) 4,516 270,922 275,438 WOODSTOCK 516,065,950 517,352,312 1,286,362 166,398 713,765 880,163

TOTAL 52,091,145,505 52,756,192,739 665,047,234 13,920,152 53,233,426 68,959,003

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The City of Fredericton

Please find below the payment in lieu of taxes reconciliation for 2019.

This summary reconciles the actual payments in lieu of taxes (PILT) made by the Federal government for 2019 to our estimate. Please ensure that you include the amount reported below, in column 6, in your 2021 general operating fund budget. If the amount in column 6 below is positive, it should be reported as non-tax revenue on line 1.9.9.1.0. If the amount is negative, it should be reported as an expenditure on line 2.8.9.1.0.

Reconciliation of PILT: 1 2 3 4 5 6 Taxation PILT received by Estimated PILT Difference Subsequent Net PILT Authority the province in amount settlements Adjustment 2019 transferred to your municipality 300.01 798,648 787,021 11,627 0 11,627 300.02 0 0 0 0 0 Total 798,648 787,021 11,627 0 11,627

If you have any questions, please do not hesitate to contact our office at (506) 444-4423.

SNB ASSESSMENT AND TAX BASE COMPARISONS / SNB COMPARAISONS - ÉVALUATION ET ASSIETTE FISCALE TAXING AUTHORITY/AUTORITÉ TAXATRICE: 300 DESCRIPTION: Fredericton SUB UNIT CODE/SOUS-GROUPE: 01 DESCRIPTION: Fredericton (Inside/intérieur)

Muncipality Type: City 2020 2021 Difference %

GENERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS GÉNÉRAUX: 4,366,871,100 4,559,741,600 192,870,500 4.42 PROVINCIAL RESIDENTIAL / BIENS RÉSIDENTIELS PROVINCIAUX: 889,867,400 899,723,700 9,856,300 1.11 FEDERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS FÉDÉRAUX: 3,551,000 3,742,500 191,500 5.39 NON-PROV-RATE RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS RÉSIDENTIELS: 34,394,600 34,966,700 572,100 1.66

TOTAL RESIDENTIAL PROPERTY / TOTAL DES BIENS RÉSIDENTIELS: 5,294,684,100 5,498,174,500 203,490,400 3.84

GENERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS GÉNÉRAUX: 1,193,806,700 1,175,824,300 -17,982,400 -1.51 PROVINCIAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS PROVINCIAUX: 196,545,500 186,130,800 -10,414,700 -5.30 FEDERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS FÉDÉRAUX: 51,866,900 52,241,100 374,200 0.72 NON-PROV-RATE NON RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS NON RÉSIDENTIELS: 137,400 140,300 2,900 2.11

TOTAL NON RESIDENTIAL PROPERTY / TOTAL DES BIENS NON RÉSIDENTIELS: 1,442,356,500 1,414,336,500 -28,020,000 -1.94

MUNICIPAL ASSESSMENT BASE / ASSIETTE D'ÉVALUATION MUNICIPALE: 6,737,040,600 6,912,511,000 175,470,400 2.60 PLUS 1/2 NON-RESIDENTIAL PROPERTY / PLUS 1/2 BIENS NON RÉSIDENTIELS: 721,178,250 707,168,250 -14,010,000 -1.94

TOTAL MUNICIPAL TAX BASE / ASSIETTE FISCALE MUNICIPALE TOTALE: 7,458,218,850 7,619,679,250 161,460,400 2.16

ADJUSTMENT TO FEDERAL BASE / AJUSTEMENT À L'ASSIETTE FISCALE FÉDÉRALE 25,194,513 (30.97%) 25,386,603 (30.92%) 192,090 0.76

MUNICIPAL TAX BASE FOR RATE / ASSIETTE FISCALE MUNICIPALE POUR LE TAUX: 7,433,024,337 7,594,292,647 161,268,310 2.17

MUNICIPAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS MUNICIPAUX: 20,832,800 20,631,200 -201,600 -0.97 MUNICIPAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS MUNICIPAUX: 76,214,100 76,424,300 210,200 0.28 TOTALLY EXEMPT PROPERTY RESIDENTIAL / BIENS RÉSIDENTIELS EXONÉRÉS: 76,611,500 76,133,500 -478,000 -0.62 TOTALLY EXEMPT NON-RESIDENTIAL / BIENS NON RÉSIDENTIELS EXONÉRÉS: 122,490,600 124,354,300 1,863,700 1.52

TOTAL EXCLUSIONS / TOTAL DES EXCLUSIONS: 296,149,000 297,543,300 1,394,300 0.47

TOTAL NUMBER OF PROPERTIES / NOMBRE DE BIENS SIGNALÉS: 19,087 19,183 96 0.50

Thursday, October 1, 2020 Page 1 of 2 SNB ASSESSMENT AND TAX BASE COMPARISONS / SNB COMPARAISONS - ÉVALUATION ET ASSIETTE FISCALE TAXING AUTHORITY/AUTORITÉ TAXATRICE: 300 DESCRIPTION: Fredericton SUB UNIT CODE/SOUS-GROUPE: 02 DESCRIPTION: Fredericton (Outside/extérieur)

Muncipality Type: City 2020 2021 Difference %

GENERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS GÉNÉRAUX: 141,688,100 145,064,900 3,376,800 2.38 PROVINCIAL RESIDENTIAL / BIENS RÉSIDENTIELS PROVINCIAUX: 108,400 126,300 17,900 16.51 FEDERAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS FÉDÉRAUX: 0 0 0 0.00 NON-PROV-RATE RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS RÉSIDENTIELS: 0 0 0 0.00

TOTAL RESIDENTIAL PROPERTY / TOTAL DES BIENS RÉSIDENTIELS: 141,796,500 145,191,200 3,394,700 2.39

GENERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS GÉNÉRAUX: 16,428,600 16,949,900 521,300 3.17 PROVINCIAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS PROVINCIAUX: 1,528,600 1,539,300 10,700 0.70 FEDERAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS FÉDÉRAUX: 0 0 0 0.00 NON-PROV-RATE NON RESIDENTIAL PROPERTY / TAUX NON PROV.-BIENS NON RÉSIDENTIELS: 0 0 0 0.00

TOTAL NON RESIDENTIAL PROPERTY / TOTAL DES BIENS NON RÉSIDENTIELS: 17,957,200 18,489,200 532,000 2.96

MUNICIPAL ASSESSMENT BASE / ASSIETTE D'ÉVALUATION MUNICIPALE: 159,753,700 163,680,400 3,926,700 2.46 PLUS 1/2 NON-RESIDENTIAL PROPERTY / PLUS 1/2 BIENS NON RÉSIDENTIELS: 8,978,600 9,244,600 266,000 2.96

TOTAL MUNICIPAL TAX BASE / ASSIETTE FISCALE MUNICIPALE TOTALE: 168,732,300 172,925,000 4,192,700 2.48

ADJUSTMENT TO FEDERAL BASE / AJUSTEMENT À L'ASSIETTE FISCALE FÉDÉRALE 0 (0.00%) 0 (0.00%) 0 0.00

MUNICIPAL TAX BASE FOR RATE / ASSIETTE FISCALE MUNICIPALE POUR LE TAUX: 168,732,300 172,925,000 4,192,700 2.48

MUNICIPAL RESIDENTIAL PROPERTY / BIENS RÉSIDENTIELS MUNICIPAUX: 1,252,200 1,297,000 44,800 3.58 MUNICIPAL NON RESIDENTIAL PROPERTY / BIENS NON RÉSIDENTIELS MUNICIPAUX: 736,500 785,300 48,800 6.63 TOTALLY EXEMPT PROPERTY RESIDENTIAL / BIENS RÉSIDENTIELS EXONÉRÉS: 281,900 286,200 4,300 1.53 TOTALLY EXEMPT NON-RESIDENTIAL / BIENS NON RÉSIDENTIELS EXONÉRÉS: 2,521,300 2,527,700 6,400 0.25

TOTAL EXCLUSIONS / TOTAL DES EXCLUSIONS: 4,791,900 4,896,200 104,300 2.18

TOTAL NUMBER OF PROPERTIES / NOMBRE DE BIENS SIGNALÉS: 1,768 1,767 -1 -0.06

Thursday, October 1, 2020 Page 2 of 2

DOWNTOWN FREDERICTON INC. 2021 BUDGET

Downtown Fredericton Inc. 2021 Budget

2021 Revenue BIA levy ($0.20/$100 of assessment @347,385,400) $ 694,771.00 Miscellaneous/Interest $ 7,000.00

Total Revenue $ 701,771.00

Expense Business Development $ 78,000.00 Capital Projects $ 180,671.00 Marketing & Communications $ 110,000.00 Office Operation $ 63,700.00 Salaries, Benefits & Employee Costs $ 269,400.00

Total Expense $ 701,771.00

Net Income $ -

BUSINESS FREDERICTON NORTH 2021 BUDGET

Business Fredericton North Inc. 2021 Budget

Revenues BIA Levy @ $0.20/$100 assessment 97,396 Business Income 2,000 Grant/Contributions 0 Employment Grants 4,000 Associate Memberships 3,000 Interest & Other 300 Sponsorship 2,100 Municipal Investment 50,000 Hawkins Golf 4,000 Savings 2,000 Total Income 164,796

Expenses Advertising & Marketing 37,599 Contributions 500 Capital Work / Maintenance 4,774 Dues & Subscriptions 1,000 Events 7,400 Façade Grants 6,000 Insurance 3,000 Meetings & Travel 6,000 Miscellaneous 200 Payroll Expenses 76,000 Office & Administration 17,823 Professional Fees 2,500 Severance Saving 2,000 Total Expenses 164,796 Net Income 0

Approved at Semi-Annual Budget Meeting Held September 16, 2020

2021

[UTILITY FUND (WATER & SEWER)] 2020 Water and Sewer Utility Fund Budget revenue and expenditures including detailed operating and capital budgets, water and sewer rates and rate history.

Section III – Utility Fund (Water and Sewer)

CONTENTS Water & Sewer Strategy ...... 86 Summary ...... 86 Rate Strategy ...... 86 Water & Sewer Bill Structure ...... 87 2021 Rate Increase Annual Impact for City Rate Payers ...... 88 The Long-Term Financial Plan Does Not Include Borrowing for Renewal ...... 88 History of Why Increases Are Required ...... 89 The importance of the investment made to keep our water safe and reliable...... 89 Service Disruptions Caused by Water Main Failures ...... 89 Water Main Breaks ...... 90 2021 Water and Sewer Utility Budget – Where the Budget Dollar Comes From ...... 90 2021 Detailed Water and Sewer Operating Budget ...... 92 Water and Sewer Budget Summary ...... 93 2021 Water and Sewer Capital Budget ...... 93 Water and Sewer Rates ...... 94 Water and Sewer Rate History ...... 95

WATER & SEWER STRATEGY GOAL

To continue to provide safe, reliable drinking water to customers and environmentally sound wastewater treatment at affordable rates competitive within the region, while addressing infrastructure needs to minimize service disruptions.

KEEPING YOU WATER SAFE AND CLEAN

SUMMARY • As a result of increased consumption likely as a result of more people working from home during the pandemic as well as in increased residential construction year, the City has seen an increase in revenue anticipated to be 4% • As this increase is in line with what we would like to see for revenue growth, there is not a recommendation of rate increases for 2021. However, it is important to attain revenue growth in order to continue with necessary infrastructure renewal, it is likely that future rate increases will be required. • Each year, more of the water & sewer bill continues to go directly towards infrastructure renewal than operations. This is in large part due to operating costs reduced by over 10% since 2012 due to efficiencies found. • Borrowing for infrastructure renewal simply delays the infrastructure issue and results in less funding available for renewal. It defers the problem, costs more and means less money available to put directly into infrastructure. It’s like using debt to fund annual household repairs.

FUNDING STRATEGY The Water & Sewer Long-term Financial Plan strategy is to take care of the infrastructure while minimizing rate increases and avoiding rate shock by:

1) Aggressively pursuing funding to pay for the cost for any new legislated water and wastewater standards so rate payers don’t pay for this cost; 2) Obtaining $40 million in other government funding over 10 years to go directly towards addressing the $186 million infrastructure deficit; 3) Reducing operating costs by $1,194,522 or 12.2% since 2012 and applying those savings directly to infrastructure renewal (see chart A below); 4) Not spending interest to borrow for renewal which would be equivalent to borrowing to finance on-going household repairs; 5) Acknowledging the significant infrastructure issue by addressing it in a planned manner and not deferring the problem for future generations to deal with at a much higher cost; and 6) Increasing rates consistently over time and keeping rates less than and competitive within the region.

CHART A

Water & Sewer Cumulative Budget Savings

$1,194,522 $1,200,000 $1,054,046 $1,000,000 $768,691 $800,000 $657,966 $670,094

$600,000 $505,560 $338,695 $400,000

$200,000

$- 2013 2014 2015 2016 2017 2018 2019 Budget Savings $338,695 $166,865 $152,406 $12,128 $98,597 $285,355 $140,476 Cumulative $338,695 $505,560 $657,966 $670,094 $768,691 $1,054,046 $1,194,522

WATER & SEWER BILL STRUCTURE A City of Fredericton Water & Sewer bill is made up of two components:

1) Fixed fee called a quarterly service charge a. Is used to fund infrastructure to get water to and from the customer and the operating costs associated with this infrastructure 2) Variable fee called consumption rate a. Is used to fund the operating costs associated with moving the water around and varies depending on the amount of water used by customers

Currently there is a mismatch between how revenue is generated and how it is spent. Eighty percent (80%) of the costs of the utility are fixed and do not change based on the amount of water used. The remaining 20% of the cost deals with the treatment of the water and wastewater based on volume consumed.

For the average household, the typical split on the water and sewer bill was 50/50 meaning half the bill is based on a fixed fee and half the bill is based on the amount of water used (consumption).

This means that customers still have the opportunity to save on their water bill by conserving and also allows the City to collect revenue to ensure appropriate levels of infrastructure renewal.

The rate structure is reviewed annually to determine the sustainability of the system compared with affordability.

2021 REVENUE INCREASE ANNUAL IMPACT FOR CITY RATE PAYERS The Water & Sewer rates will not increase in 2021 resulting in a consistent bill for customers from the prior year. Increased consumption means that rates do not need to increase but additional revenues will be generated to continue to invest in key infrastructure renewal projects.

Chart B

Infrastructure Deficit based on 20 year Reinvestment 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 -

with 4% Rate Increase with 3% Rate Increase With no Rate Increase

THE LONG-TERM FINANCIAL PLAN DOES NOT INCLUDE BORROWING FOR RENEWAL Within the General Fund, the strategy has been to build up debt borrowing room for key strategic major Council priority projects. Borrowing is not used for on-going infrastructure renewal. Over a 10-year period of high growth years, money was set aside for this type of borrowing and was built into the budget. The City uses the Pay As You Go capital budget for the infrastructure renewal and only uses debt for flexibility to fund a key strategic Council priority every number of years.

Similarly, there is no borrowing in the water and sewer fund for infrastructure renewal projects. If there was debt financing over a 20 year period, a significant portion would go towards interest. That means, Water & Sewer could lose up to $58 million to interest payments over 20 years. That’s money that now goes directly towards investment in infrastructure renewal.

This borrowing would only be a short-term fix and defers truly addressing the infrastructure issue. Once the borrowing is made, that funding is committed to make the debt payments for 20 years and cannot be used for infrastructure renewal in the following years until the debt payments are paid-off in 20 years. By following a Pay As You Go Model, every dollar of capital funding goes directly to infrastructure renewal. The infrastructure renewal required is year after year investment in replacing 1% of that infrastructure in addition to addressing the $140M infrastructure deficit, or backlog of old infrastructure needing replaced today.

HISTORY OF WHY INCREASES HAVE BEEN REQUIRED 1) Water & Sewer infrastructure lasts a long time and until the early 2000s, there was no realization or emphasis on the requirement to build up funding to replace old infrastructure. Pipes and systems were within their life cycles. 2) Revenue was used for day to day operations and infrastructure extensions, not for replacing old infrastructure. 3) Over the period of 1990 – 2013, there were many years of no rate increases and in other years, increases that did not even keep pace with inflation. Also, increases were only applied to the consumption rate. Therefore the consumption and fixed rate ratio became off balance. a. From 1990-2004, over the 14 year period, there were eight (8) years of zero increases. b. For the other years, rate increases were low and did not keep pace with inflation. 4) The biggest portion of the revenue generated was based on consumption. Since 2005, consumption decreased 23.4% while the biggest portion of the cost is needed infrastructure replacement. For 2019 and 2020, consumption has begun to rebound and we are seeing an increase in water usage. This is partially due to an increase in the number of connections in the City due to development. 5) Looking at the situation today, the amount of infrastructure that should be funded for replacement annually (called “depreciation”) is $13.3 million. This does not include the additional backlog of over $176 million in old infrastructure needing replaced. The revenue generated to pay for infrastructure is $12.4 million. This means that the infrastructure deficit will grow by $900,000 in 2021 alone excluding funding from other levels of government.

THE IMPORTANCE OF THE INVESTMENT MADE TO KEEP OUR WATER SAFE AND RELIABLE.

SERVICE DISRUPTIONS CAUSED BY WATER MAIN FAILURES Infrastructure Renewal is needed to continue to deliver high quality drinking water, and to minimize service disruptions. Boil orders can have a significant impact on residents. Failed water mains have been the number one cause of boil orders in New Brunswick over the past 10 years.

Since 2006, 118 different municipalities have reported boil orders to the New Brunswick Chief Medical Officer. Almost half of the boil orders reported were a result of water main breaks and loss of pressure in the water system.

Fredericton has had only one (1) wide-spread boil order in the past ten years lasting only three (3) days. This was a precautionary measure due to construction in that area and not the result of any contamination issue.

The City’s investments, targeted at areas with high water main breaks, have been successful in preventing serious service interruptions. However with older infrastructure, the City is still susceptible to water main breaks which cause service interruptions and impact residents. That is why the City has a plan to continue to focus on adequately addressing the infrastructure deficit and infrastructure renewal.

WATER MAIN BREAKS Infrastructure renewal helps keep water main failures from trending higher. This helps avoid service disruption due to contamination or boil orders.

Chart F

60 Water Main Failures Trend 48 43 43 40 39 41 36 38 32 32 37 28 29 28 20 21 20

0 2005 2007 2009 2011 2013 2015 2017 2019

2021 WATER AND SEWER UTILITY BUDGET – WHERE THE BUDGET DOLLAR COMES FROM

100.0% 89.8% 80.0% 59.3% 60.0%

40.0% 29.4%

20.0% 6.6% 0.5%3.2% 2.0% 2.6% 0.5%1.2% 0.4%3.7% 0.1% 0.5% 0.1%0.1% 0.0%

Connections Consumption

City of Fredericton 2021 Water and Sewer Utility Budget Revenue

Water Supply and Wastewater Delivery Management 45% 44%

Other Transfers Fire Protection 7% 4%

Water Supply & Delivery $10,397,080 *Other Wastewater Management 10,323,571 Hydrant Rentals 1,000,612 Other* 2,531,677 Other Transfers 1,531,065 Total $23,252,328 Total 2,531,677

2021 DETAILED WATER AND SEWER OPERATING BUDGET

Description 2020 Budget 2021 Budget $ Change Water & Sewer W&S-Dept. Of Environment 1,000,612 1,000,612 - Surplus (2nd Previous Year) 1,862,191 1,432,615 (429,576) 2,862,803 2,433,227 (429,576)

Water Residential 6,981,640 7,429,043 447,403 Commercial 2,060,047 2,032,466 (27,581) Industrial 13,187 13,192 5 City Of Fredericton 98,100 93,962 (4,138) Province Of New Brunswick 239,172 213,367 (25,805) Government Of Canada 236,808 237,469 661 U.N.B. 260,767 240,224 (20,543) St. Thomas University 28,950 32,577 3,627 Private Hydrant Fee 104,780 104,780 - 10,023,451 10,397,080 373,629

Sewer Residential 6,994,194 7,532,390 538,196 Commercial 2,031,068 1,981,946 (49,122) Industrial 11,354 11,059 (295) City Of Fredericton 86,461 83,847 (2,614) Province Of New Brunswick 238,609 208,840 (29,769) Government Of Canada 231,072 239,677 8,605 U.N.B. 255,167 234,727 (20,440) St. Thomas University 27,315 31,085 3,770 9,875,240 10,323,571 448,331

Common Services Connection And Service Charges 13,000 13,000 - Connection And Service Charges 13,000 13,000 - Certificates 10,000 10,000 - Building Fire Protection Fee 61,950 61,950 - Missed Appointment Fee 250 250 - Missed Appointment Fee 250 250 - 98,450 98,450 -

WATER AND SEWER GRAND TOTAL 22,859,944 23,252,328 392,384

2020 Budget 2021 Budget $ Change Water Supply and Delivery Revenue 10,108,651 10,482,280 373,629 Wastewater Management Revenue 9,888,490 10,336,821 448,331 Fire Protection Services 1,000,612 1,000,612 - Other Transfers (2nd Previous Year's Surplus) 1,862,191 1,432,615 (429,576) 22,859,944 23,252,328 392,384

WATER AND SEWER BUDGET SUMMARY

BY PERSONNEL & NON-PERSONNEL COSTS

2020 Budget 2021 Proposed $ Change % Change Water Supply and Delivery Revenue $ 11,117,263 $ 11,492,132 $ 374,869 3.4% Surplus - 2nd Previous Year 931,096 716,308 (214,788) -23.1% Personnel (2,753,885) (2,675,129) 78,756 -2.9% Non-personnel (2,294,075) (2,213,176) 80,899 -3.5% $ 7,000,399 $ 7,320,135 $ 319,736 4.6%

Wastewater Management Revenue 9,880,490 10,328,821 448,331 4.5% Surplus - 2nd Previous Year 931,095 716,307 (214,788) -23.1% Personnel (2,759,892) (3,070,828) (310,936) 11.3% Non-personnel (2,767,850) (2,861,785) (93,935) 3.4% $ 5,283,843 $ 5,112,515 $ (171,328) -3.2%

Capital $ (12,284,242) $ (12,432,650) $ (148,408) 1.2%

Net Balanced Budget - - -

2021 WATER AND SEWER CAPITAL BUDGET

Infrastructure Renewal Water Supply & Delivery $ 5,051,575 Wastewater Management 5,921,575 Common Equipment 689,500 $ 11,662,650 New $ 110,000 NTCA (Studies & Design) $ 660,000

Total Capital Budget $ 12,432,650

WATER AND SEWER RATES

CITY OF FREDERICTON WATER AND SEWER RATES

Approved 2020 Approved 2021

Water Sewer Total Water Sewer Total

$0.93 $0.93 $1.86 $0.93 $0.93 $1.86

unmetered users (per Quarter)

$65.24 $65.24 $130.48 $65.24 $65.24 $130.48

Metric Rate Quarterly service charge $58.60 Consumption Rate $0.93 per Cubic Metre

Imperial Gallons Rate Quarterly service charge $58.60 Consumption Rate $4.23 per 1000 Gallons

Residential Meter $2.00

Water & Sewer Rate Comparison 2020 and Approved 2021 for a Typical Fredericton Residential Household City 2020 Yearly 2021 Approved Increase Fredericton $840 $840 $0

Based on 195 m3 annual consumption for each of water and sewer.

WATER AND SEWER RATE HISTORY

City of Fredericton Record of Water & Sewer Rates 1998-2021 Year Per M3 1998 46¢ 1999 47¢ 2000 47¢ 2001 47¢ 2002 49¢ 2003 49¢ 2004 49¢ 2005 51¢ 2006 53¢ 2007 55¢ 2008 57¢ 2009 61¢ 2010 66¢ 2011 71¢ 2012 76¢ 2013 82¢ 2014 83¢ 2015 84¢ 2016 84₵ 2017 84₵ 2018 89₵ 2019 91₵ 2020 93₵ 2021 93₵

Note: 93¢ for each of water & sewer for a total of $1.86 per m

2020

[RESOLUTIONS OF CITY COUNCIL]

City Council November 23, 2020

RESOLUTION NO: 1

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton approves and authorizes the General Fund Operating Budget for 2021, being:

The sum of $125,103,239 be the total operating budget of the Municipality, that the sum of $110,537,926 be the Warrant of the Municipality for the ensuing year, and that the tax rate(s) for the Municipality be inside $1.4311, outside $1.0733. The Council orders and directs the levying by the Minister of Environment and Local Government of said amount on real property liable to taxation under the Assessment Act within the Municipality of The City of Fredericton.

City Council November 23, 2020

RESOLUTION NO: 2

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton directs THAT the amount of $19,352,350 for the 2021 General Fund Pay As You Go Capital budget be approved in accordance with the Public Procurement Management Policy No: COR-POL-023, and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby authorizes and directs the Mayor and City Clerk to execute any CCDC2 and CCDC4 contracts for the acquisition of the assets and the completion of the construction projects listed and approved as part of the 2021 Capital Budget; and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby authorizes and directs the Mayor and City Clerk to execute any agreements of purchase and sale and such further legal transactional documents as required in relation to the approved construction projects that form part of the 2021 Capital Budget with content satisfactory to the Director of Engineering and Operations, or designate, and in a form and content approved by the City Solicitor, or designate; and

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton hereby directs that any 2021 capital budget savings within Corporate Fleet Capital be reallocated to the next top priority vehicle/equipment on the infrastructure deficit listing.

City Council November 23, 2020

RESOLUTION NO: 3

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and approves the following as the Fredericton Police Force Operating Budget for 2021:

The sum of $18,852,106 be the total direct operating budget for the Fredericton Police Force which includes a Personnel budget of $17,120,722 with a full-time equivalent of 136, as noted in Schedule A, a Non-Personnel budget of $1,711,384 and a Non-Tangible Capital budget of $20,000; and Schedule A:

Police FTE Complement 2021 Police Officers Approved Complement 109 Civilian Staff 27

Total Police Department FTE Approved Complement 136

BE IT FURTHER RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and directs the staff of the Legal Division to draft the appropriate by-law to amend By-Law No. A-6, A By-law Respecting the Table of Organization of the Fredericton Police Force to give effect to the Schedule A Fredericton Police Force, Full Time Equivalent Complement for 2021 as prescribed in this resolution.

City Council November 23, 2020

RESOLUTION NO: 4

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton approves and authorizes the following Recreation and Social Facilitation rates, effective January 1, 2021, as follows:

A. Royals Field Cost per Game be increased from $43.20 (HST extra) to $51.84 (HST extra)

City Council November 23, 2020

RESOLUTION NO: 5

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton authorizes and directs the staff of the Legal Division to prepare an appropriate by-law to amend By-law No. T-7, A By-law Relating to Parking Meters, Parking Zones, and Pay and Display Machines for the City of Fredericton, to reflect that the permit fees be increased as follows, effective February 1, 2021:

A. Frederick Square Garage Monthly Permit – be increased from $100.00 (incl. HST) to $120.00 (incl. HST)

B. East End Garage Monthly Permit – be increased from $120.00 (incl. HST) to $130.00 (incl. HST)

C. York Parking Lot Monthly Permit – be increased from $115.00 (incl. HST) to $120.00 (incl. HST)

D. Officer’s Square Parking Lot Monthly Permit – be increased from $115.00 (incl. HST) to $120.00 (incl. HST)

100

City Council November 23, 2020

RESOLUTION NO: 6

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Business Improvement Levy (Queen) for Downtown Fredericton Inc.:

CONDITIONAL TRANSFER FROM PROVINCIAL GOVERNMENT TO BUSINESS IMPROVEMENT CORPORATION

Business Business or Improvement Levy Property Assessment Rate $694,771 $347,385,400 $0.20

BE IT FURTHER RESOLVED THAT on the 23rd day of November 2020 the Council of the Municipality of The City of Fredericton will enact a by-law imposing a business improvement levy on all non-residential property within the Business Improvement Area of the municipality that is liable to taxation under the Assessment Act within the Business Improvement Area of Queen Street as outlined in By-law No. L-13. The levy shall be in the amount of $694,771 at the rate of $0.20 and the Council of the City of Fredericton hereby directs and orders the Minister of Environment and Local Government to levy the said amount pursuant to provisions of the Business Improvement Area Act.

101

City Council November 23, 2020

RESOLUTION NO: 7

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Business Improvement Levy (Main) for Business Fredericton North Inc.:

CONDITIONAL TRANSFER FROM PROVINCIAL GOVERNMENT TO BUSINESS IMPROVEMENT CORPORATION

Business Business or Improvement Levy Property Assessment Rate $97,396 $48,697,900 $0.20

BE IT FURTHER RESOLVED THAT on the 23rd day of November 2020 the Council of the Municipality of The City of Fredericton will enact a by-law imposing a business improvement levy on all non-residential property within the Business Improvement Area of the municipality that is liable to taxation under the Assessment Act within the Business Improvement Area of Main Street as outline in By-law No. L-15. The levy shall be in the amount of $97,396 at the rate of $0.20 and the Council of the City of Fredericton hereby directs and orders the Minister of Environment and Local Government to levy the said amount pursuant to the provisions of the Business Improvement Area Act.

102

City Council November 23, 2020

RESOLUTION NO: 8

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of The City of Fredericton approves and authorizes the following amount as the Utility Fund (Water and Waterwater) Operating Budget for 2021:

Pursuant to paragraph 117(4) of the Local Governance Act, the total budget for the Water and Wastewater utility for the ensuing year would consist of total revenues of $23,252,328, and total expenditures of $23,252,328.

103

City Council November 23, 2020

RESOLUTION NO: 9

Moved by ______, seconded by ______

BE IT RESOLVED THAT the Council of the Municipality of the City of Fredericton authorizes and approves the amount of $12,432,650 for the Water and Sewer Fund 2021 Pay As You Go Capital budget in accordance with the Public Procurement Management Policy No: COR-POL-023, and

104