New Brunswick: Province says no extra money to compensate for property tax freeze

SAINT JOHN, NB, Oct. 10, 2025 – The president of the Union of New Brunswick Municipalities (UMNB) says it's called for compensation from the province to cover the budget gaps caused by a one-year freeze on property tax assessments.

But the province's local government minister says there's no extra money planned to compensate for the freeze.

On Tuesday, the province announced increased community grants as part of its municipal fiscal reform initiative passed earlier this year, as well as each municipality's tax base. The province has announced a one-year freeze on assessment values as an "interim measure to mitigate property tax increases" while government works to reform the system, Local Government Minister Aaron Kennedy said Friday.

The grants include a $77 million equalization fund, which is a $20 million increase from the previous community funding grant, as well as a $43 million capital renewal fund intended to "support local governments in providing important services and renewing infrastructure," Kennedy said. The government also said Tuesday that despite the freeze, the tax base increased $2.5 billion, or 2.69 per cent, due to new builds and sales.

UMNB president Brittany Merrifield said Wednesday that they were still reviewing it, but at "first glance," it appears that for 40 per cent of communities, that growth doesn't cover the cost of inflation defined by the "local government cost index."

She said the provincial statistic, which tracks expenditures on municipal needs like diesel fuel and asphalt, is up 2.87 per cent, compared to 1.6 per cent growth in the broader consumer price index in August.

"In 78 per cent of municipalities, councils will have to look at either reducing services or increasing rates," Merrifield said. "UMNB is looking for compensation from the provincial government so that municipalities can meet those inflationary needs while providing affordability to residents.

"Without that compensation, the assessment freeze will not be the affordability measure that I think the provincial government was intending it to be."

In his statement, Kennedy said that assessments are "intended to establish a fair distribution of the property tax burden" among property owners, not to set "the magnitude of the tax."

"The assessment freeze is a temporary measure, and no additional funding related to the freeze is being considered," he wrote in the statement.

UMNB Pursuing Diversification of Revenue

Merrifield spoke following the organization's annual conference in Saint John Oct. 3-5. She said that property tax and assessment reform are a top priority for the group, with municipalities "85 per cent reliant" on property tax for revenues.

She called the fiscal reform structure a "strong foundation," and said that they are advancing other proposals to reduce reliance on property tax, such as a call to transfer 1/10th of the provincial portion of the HST to municipalities.

That follows an April report by economist David Campbell commissioned by UMNB, which predicted that the move would boost provincial GDP by $218 million and support over 2,000 full-time equivalent jobs.

"The diversification of revenue is something we're actively pursuing so that we can help relieve the pressure that property tax places on residents," Merrifield said.

More than 325 mayors, councillors and staff from 58 municipalities gathered for the conference, which featured sessions with speakers on issues like fiscal reform, health care, housing, mental health and risk management.

UMNB Annual Conference Includes AGM

The opening ceremony last Friday featured speeches by Kennedy, Premier Susan Holt, Green Party leader David Coon, Saint John-Kennebecasis Liberal MP Wayne Long as well as Merrifield and Saint John Mayor Donna Reardon.

Merrifield said there was "a lot of optimism in the room" Friday, saying that it's great to have provincial and federal representatives talking about how to work together.

Saturday featured an awards banquet at which Grand Manan Mayor Bonnie Morse, Hampton Coun. Ken Chorley and Senator Dawn Arnold, formerly the mayor of Moncton, were honoured.

The organization's annual general meeting took place Sunday, when Merrifield said she was elected to a new two-year term as UNMB president along with a new board.

"It was a really successful weekend," said Merrifield. "That's the biggest conference that UMNB has ever hosted, which is quite an achievement."

It's the first time since 2000 that the event, usually held in Fredericton, had visited the Greater Saint John area.

"We're sort of limited in terms of the space we require to hold the conference," she said. "Because we have now expanded our membership ... we can now utilize the city as a conference host."

Saint John had been a member of the Cities of New Brunswick Association, which announced in January last year that it would be merging with UMNB. Merrifield said that change took effect practically in December, with the transition in the "housekeeping" stage now.

Saint John Common Council endorsed a motion at its last council meeting to wind up the organization and transfer its assets to UMNB.

"UMNB was always a strong voice for municipalities across the province, but ... we've become a real powerhouse," said Merrifield. The province's municipalities are now represented by UMNB and the Association francophone des municipalités du Nouveau-Brunswick, which Merrifield said together reach the "vast majority of New Brunswickers."

The change allowed the city of Saint John, which had not previously been a member, to host this year's event, according to Reardon.

Reardon said when she was elected in 2021 that the group also known as the 8 Cities of New Brunswick was already looking at "reinventing our relationship" given its size relative to UMNB.

"That's what we really wanted to do, we would add some horsepower to that group and we would gain some horsepower from that group," she said, saying the cities are now part of an "urban caucus" with its own meetings.

She said the weekend was "fantastic," and that it was nice to see the hundreds of delegates in the city.

"A lot of people haven't been to Saint John for years and were impressed" with the Gathering Space, Ihtoli-maqahamok, as well as the walking path around Fundy Quay, Reardon said.

Merrifield said the energy during the weekend is "always unmatched."

"The work we do is incredibly unique, and it's only really understood fully by other people that are doing the same work," she said. "When we get together we have the opportunity to connect, to learn from each other, to talk about the challenges and successes that we are all dealing with."

New Resolutions on Sales Tax, RCMP Contracts, Tax Credits

In addition to tax reform, Merrifield said the advocacy group will be working on infrastructure, housing, homelessness, fiscal reform, ambulance service and cellphone and broadband coverage.

At each AGM, the organization votes on proposals for new advocacy priorities in the coming year. This year saw nine new resolutions, including motions from the UMNB board on the HST as well as creating a provincial-municipal RCMP contract management committee.

Other motions included a resolution from Grand Manan to expand the N.B. Small Business Investor Tax Credit to allow for more affordable housing, a resolution from Fundy Shores and Valley Waters to reinstate the municipal advisor, a provincial staffer who could provide guidance and training for newly elected officials.

Three motions from Quispamsis calling on the government to take action on adding more early learning and childcare spaces, increase long-term care beds and regulate the use of stand-up electric scooters for safety reasons were also endorsed.

"If you look at the list of resolutions, it shows the vast landscape of the work that municipal officials and administrators are expected to do," Merrifield said.

With elections coming in May, Merrifield said the municipal sector is "worried" about recruitment and retention.

She says municipal politics is "not an easy job," adding increases of "incivility' and harassment and increased workload will make it a "challenge" to fill all the open positions.

She said the association has been advocating for continued support and education before and after elections, saying that support "will make the job a lot easier."

"I will tell you that measures like the assessment freeze are making our job a lot harder," she said. "I've talked to a lot of my colleagues that said, going into an election where our hands are tied, it can be a disheartening situation."

Andrew Bates is a Local Journalism Initiative reporter with the Telegraph-Journal in Saint John, New Brunswick. Title image: Brittany Merrifield, president of the Union of Municipalities of New Brunswick and mayor of Grand Bay-Westfield, speaks at the opening ceremonies for the lobby group's annual conference Oct. 3. James Walsh (Rod Stears Photography & Video)/Courtesy of UMNB.