Halifax council to debate ‘massive’ 10.5 per cent property tax hike

Halifax council will be discussing a possible property tax hike in the upcoming budget.

A “massive” increase to property taxes in the Halifax Regional Municipality is on the table as budget deliberations are set to begin on Wednesday.

As of now, a 10.5 per cent hike is on the books to support an $88.9-million increase to the city’s budget.

In the Budget Direction document, staff noted council had directed them to hold overall spending, except for uncontrollable increases, “such as inflation, contractual obligations, and mandatory provincial contributions.

“Despite these efforts to control expenditures, rising costs in compensation, reserve replenishment, and previously approved initiatives are projected to require an average property tax bill increase of approximately 10.5 per cent.”

Since many councillors agree people can’t afford that, the question then becomes what to cut from an already bare-bones budget.

“We’re seeing rate proposal increases from Halifax Water, we’re seeing a rate proposal increase from Nova Scotia Power,” Mayor Andy Fillmore told reporters. “Our first moment out of the gate is a 10.5 (per cent) increase on a tax bill… People just can’t afford this.”

“The $88.9 million budget increase reflects the combined effect of maintaining core services, restoring reserve balances, and meeting essential commitments, while continuing to seek operational efficiencies and savings,” the Budget Direction document reads.

But there are capital projects on the horizon that will need to be addressed, says Coun. Janet Steele, who represents Timberlea-Beechville-Clayton Park-Wedgewood.

“For example, we have the Windsor Street Exchange, we have a big decision to make on the Halifax Forum and there’s many, many different capital projects that are coming forward,” she tells CTV News Atlantic.

Patty Cuttell, who was sworn in as the city’s new deputy mayor on Tuesday, says council should stay the course on planning and infrastructure.

“If we’re not strategic about that, I feel there’s going to be pain for taxpayers further down the road,” says the councillor for Spryfield-Sambro Loop. “So, for me, a big priority is around planning and development and getting our suburban plan off the ground.”

She also says transit investments are necessary to address congestion.

But despite the sticker shock number on the budget, perhaps hope for a flat rate is not lost just yet.

“Last year, I think we started at an 8.4 per cent increase and whittled it down to four-something, which was a flat tax rate,” says Steele. “That may be possible again this year, however, this year we have new challenges.”

“I was expecting for the budget to come back a little bit higher than last year,” Fillmore said. “I was not expecting this massive increase that we’re seeing; the 10.5 per cent increase on the tax bill. So, I will be very actively trying to push that number down.”

He tabled two motions over the summer, one of which was asking staff to look at a Corporate User Fee Policy and Strategy, to help rely less on property taxes.

The tune this year is similar to last year: trying to save in difficult financial times.

“This one’s a little bit more bare bones,” says John Young, the councillor for Hammonds Plains-Upper Hammonds Plains-Lucasville-Middle & Upper Sackville.

“It’s at a point where we know things – some programs – are going to have to be cut, some services may be delayed, some projects may be delayed.”

For Young, everything is on the table as budget discussions begin.

Asked how the debate will go with some councillors having a no-touch list, he offered this prediction: “It’s probably going to be a little spicy in there.”

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