Fredericton cuts property tax rate

Fredericton residents will be getting a tax break in the 2011 budget but city council will be hiking up fees on certain services.

City council passed the 2011 financial package at a special meeting on Monday night.

The city's $98-million operating budget for 2011 includes the first property tax reduction in more than 20 years.

Fredericton residents will see their property tax rate drop 0.5 cents to $1.4211 per $100 of assessed property value.

The tax reduction will translate into a savings of $7.50 for a home that is assessed at $150,000.

Meanwhile, the outside property tax rate will be $1.0668 per $100 of assessed property value.

Parking fees will go up and the costs to purchase blue and grey recycling boxes will increase

As well, transit service to Lincoln and Silverwood will be eliminated or reduced.

The city had to budget for $644,042 in increased costs due to the provincial government's one per cent cut in the unconditional grant, the three per cent cap on property tax assessments and reductions in designated route maintenance.

The budget approved $381,517 in new expenses for items such as the Local Historic Places Register and the purchase of an additional sidewalk plow.

And councillors found an estimated $900,371 in savings. According to the city, the budget cut 13 summer students and two administrative positions at the Fredericton Fire Department.

Further, there is a reduction or an elimination of money for the Fredericton Botanical Garden, the new Bobby Burns statue base, the Regent Street wharf installation and community school playgrounds.