SAINT JOHN -- Facing a $10-million deficit and a heavy debt load, the cash-strapped City of Saint John is calling its latest budget a “transitional” one.
“We’re going into some pretty tough decisions in 2021 and 2022, OK, and we’re getting ready for that in this budget,” says David Merrithew, chair of the Saint John Finance Committee.
The three-year provincial funding package from the previous Liberal government expires in 2021. To help get back on track, council is considering dozens of so-called sustainability initiatives, such as freezing salary and benefits for city workers, getting rid of at least one arena, and adjusting city service levels for things like snow-clearing.
This week, council chose to move ahead with what they call “workforce adjustments” and “personnel policy changes” to address 50 per cent of the deficit in 2021 and 2022.
Reaction from Saint John residents has been mixed.
“You bite the bullet now and re-budget, have figures that are … going to balance in the near future,” says Bruce Martin.
“Moncton built a complex there for hockey, Quispamsis built a big complex for hockey, and here in the city we’re closing stuff, so it doesn’t make a whole lot of sense to me,” says Andy Reid.
A report from the city manager says: “Without successful transformational reforms, the city will have no choice but to continually cut services and its workforce, which will eventually lead to the city being a shadow of its former self.”
“We can see some light at the end of the tunnel in Saint John,” says Merrithew. “We truly can by 2026-27 -- it’s not that far away when you think about it.”
Council is expected to vote on the $166-million budget on Dec. 16.
