A lower rate, but higher bills for many
Moncton city council is considering a proposed $390-million budget for 2027 that would reduce the municipal property tax rate, although most residential property owners are still expected to pay more overall. City staff presented the plan Tuesday as council began several days of budget deliberations. A final decision is expected Thursday, and both the spending totals and the proposed tax rate could change before the vote.
The draft calls for a tax-rate reduction of about six per cent, bringing the rate to $1.2779 for every $100 of assessed value. That change does not automatically translate into a lower tax bill. The city’s forecast says most residential properties will see their total municipal tax bills rise by 3.2 per cent, largely because property assessments set by the province have increased.
Assessment values in Moncton are reported to be up 11.2 per cent from 2026. The result is a distinction that can be difficult for homeowners to reconcile: the city can lower the rate applied to a property while the amount payable still rises because the assessed value is higher. For residents preparing household budgets, the assessment increase is therefore as important as the rate proposed by council.
“Our financial position is strong, it remains strong,”
Jacques Doucet, the city’s general manager of finance services, told council during the presentation. He also identified risks connected with U.S. tariffs, higher interest rates and the condition of provincial finances. Those factors form part of the wider financial environment facing the city as council reviews whether the proposed plan can support its operating, capital and utility commitments.
Where the proposed spending would go
The draft budget is divided among three main components. The operating budget, which covers the city’s regular services and activities, is proposed at $245.6 million, an increase of $9.3 million from 2026. The capital budget is set at a proposed $94.6 million, up $1.9 million. A separate utility budget is proposed at $49.3 million, an increase of $1.5 million.
| Budget component | Proposed 2027 amount | Change from 2026 |
|---|---|---|
| Operating | $245.6 million | +$9.3 million |
| Capital | $94.6 million | +$1.9 million |
| Utility | $49.3 million | +$1.5 million |
The city’s proposed utility charges would also affect household costs. The plan projects that an average household would pay $1,166 annually in water and sewer fees. The source report says those rates are projected to rise slightly, but does not provide a completed percentage in the available budget details.
Assessment growth remains a longer-term issue
Doucet said the provincial spike-protection mechanism, which limits annual assessment increases to 10 per cent, applies to many residential properties. Because those properties remain subject to assessment growth over time, the city expects increases to continue in future years. That outlook gives the budget debate significance beyond the proposed 2027 rate: residents may continue to see pressure on their tax bills even when council reduces the municipal rate.
Council’s deliberations will determine whether the proposed tax rate and spending plan proceed as presented. Until members complete their review and vote, the figures remain a draft. For Moncton property owners, the central question is how the city will balance a lower rate against rising assessments, utility costs and the financial risks identified by staff.
- Proposed total 2027 budget: $390 million.
- Proposed tax rate: $1.2779 per $100 of assessed value.
- Expected change for most residential tax bills: 3.2 per cent higher.
