How Much Does It Cost To Run A Local Service District (LSD)?

[Note: I suggest reading these two previous posts, found here and here, on this subject for additional background material.]

Do residents of Local Service Districts (LSDs) in New Brunswick pay too much or too little for the services they receive from governments?

That is a question that has been raised before in this Province and we will see it raised again across New Brunswick, especially now that the Province has moved forward with some of the recommendations of the Finn Report, namely the creation of the Regional Service Commissions (RSCs). The latter are charged with delivering ‘local’ and ‘provincial’ services on a regional basis. For LSDs, that means that services that have been provided to residents of LSDs by the Province (e.g. road maintenance, snowplowing, policing) are gradually being transferred to the RSCs, which have been given the task of providing those services on a cost-recovery basis.

For several decades, the Province has levied a tax rate (referred to as the ‘Special Provincial Levy’) of $0.65 per $100 of assessed value on LSD residential properties to pay for those services. Over the next few years, that $0.65 will gradually be shifted from the ‘provincial’ to the ‘local’ portion of property taxes and the RSCs will be given the task of recovering enough in tax revenue to pay for those services. Will the existing LSD tax rates provide RSCs with enough revenue to cover service costs? As the cost of a number of those services has increased significantly, LSDs that have experienced a slow rise (or decline) in the assessed value of properties may see substantial hikes in property taxes to make up any deficiency in revenue.

Continue reading

Facebooktwitterby feather