Saint John politicians are preparing to debate the 2013 budget on Monday as the province’s largest city is bracing for a drop in new construction.

Saint John’s budget is projecting a growth in property assessments of just more than three per cent, but that is down from five per cent in 2012.

Stephen Beatteay, a member of the Saint John Construction Association, said construction activity may be dropping this year, but he said the city has benefited from a decade of solid growth.

"Moving forward, you could probably look at 70 per cent less — in known volumes — than we have today,” he said.

The greater Saint John area has benefited in recent years by several megaprojects that are now wrapping up. The refurbishment of the Point Lepreau Nuclear Generating Station is finished and work is winding down at the new mine in Sussex.

Saint John’s unemployment rate increased to 9.9 per cent in December from 9.3 in November, according to Statistics Canada.

Holding out hope for new projects

Other contractors and politicians are remaining optimistic that other large projects could soon be in the offing.

Steve Britain is building a new apartment building in the Millidgeville area. Britain said he does not think things will get much worse in the city.

"You know this talk of a pipeline, the fact that the Irvings are bringing oil in from out west by train certainly improves their business,” he said.

“Who knows what might happen, the Halifax shipbuilding project, there could be spin-offs here."

Coun. David Merrithew is also remaining optimistic about future growth levels in the city.

“Things will get better. We'll have some projects,” he said.

“I’m looking forward to a spin-off of the shipbuilding contracts in Halifax. I think that could have a great impact. I'm looking for some waterfront development here in the next year or so."

Despite his optimism, Merrithew said assessment growth could slow even further next year. If that happens, he said, city council will simply have to live within its means.

Saint John’s draft 2013 operating budget is worth $147.9 million.

The city is expecting to pull in $118.2 million from property taxes, which is an increase of 3.1 per cent from 2012.