Fredericton's net debt hits new low despite rising expenses

Fredericton's net debt has fallen to an all-time low, but the city's finance chair is worried about the future as expenses start to outpace revenue.

The city released its audited financial statements on Monday night that showed Fredericton posted a $26 million surplus last year.

Meanwhile, the city's net debt stood at $9 million down to the lowest levelin at least 10 years.

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Coun. Greg Ericson, the city's finance chair, said he's still concerned about the city's ability to continue posting surpluses in the future.

"It concerns me that our expenses continue to grow faster than our revenues do," he said.

The city used a $3.6 million surplus in the general fund to deal with a shortfall of cash stemming from the province's property tax assessment freeze and a growth in operating costs.

Documents show the city still needs to find $1.4 million for its 2019 budget.

"This is not information the city is unaware of," Ericson said. "We've been managing our program for many years of continuous improvement and innovation inside of how we provide our services and infrastructure to the city."