Proposed CBRM amendments to controversial funding-agreement bill dismissed at committee

Mayor Amanda McDougall-Merrill and several of her Cape Breton Regional Municipality colleagues brought their grievances about the proposed Municipal Reform Act to Halifax on Monday.

But proposed amendments based on their presentations fell on deaf ears with the Progressive Conservative majority members on the Law Amendments Committee. 

“I am proud of my CBRM team for their powerful presentations today, also grateful for the members who brought forward and supported the amendments to Bill 340,” McDougall-Merrill said in a message sent during a brief stop along her drive back to Cape Breton.

“While I am disappointed with the outcome of the committee vote, there is still opportunity for debate and amendments as the bill goes to third reading.” McDougall-Merrill said.

“I hold out hope for an amended bill that supports all municipalities and doesn’t blatantly disadvantage CBRM as it does in its current state.” 

Shortly after making her presentation to the committee and before the 5-4 committee vote to send the bill back to the House without amendment, the mayor said an appearance before the committee “first and foremost,” gave her and her colleagues an opportunity to have their voices heard.

“That’s been a resounding issue with all of our council and staff members here today,” she said. “Making sure that people truly understand that we are not here to oppose a bill, we’re here to say that amendments need to be made to this bill to make it better and to benefit all municipalities.”

The top amendments pursued by CBRM and the six presenters on the municipality’s behalf were the doubling of the municipal financial capacity grant and a move that would allow CBRM a one-year period for a fair and honest negotiation with the province on a funding agreement with the province that would be separate from the province’s memorandum of understanding with the other 47 municipalities, excluding Halifax Regional Municipality.

Dashed hopes

Before the committee meeting wrapped up Monday afternoon, McDougall-Merrill was hopeful.

“Being asked by one of those (majority) members to put your asks in a summary point form, to me that’s a wonderful indication that this process is actually working,” the mayor said. “People are hearing and understanding and these types of forums are so important to make sure that communication can happen.

“I have hope that we were heard and that we will see amendments.”

That hope carried up to the point that Kendra Coombes, the NDP member for Cape Breton and a committee member, made her motion to at least double the municipal financial capacity grants each year and that the Municipal Affairs and Housing Department would, within one year, consult and negotiate with CBRM on a separate funding agreement that accounts for the municipality’s unique challenges and needs.

But before you could say Tory majority, the amendment was defeated.

“That does it for today, folks,” committee chairman Brad Johns said after the amendment was defeated.

The controversial bill, introduced Oct. 17 and slated to take effect April 1, amends several pieces of legislation to enable implementation of a renegotiated Service Exchange Agreement.

For municipalities covered by the renegotiated agreement, proposed amendments will include:

• removing the requirement under the Corrections Act for municipalities to make an annual contribution towards corrections
• removing the requirement under the Housing Supply and Services Act for municipalities to pay a portion of the net operating losses for public housing
• changing the Education Act so that, in the future, ownership of schools built prior to 1981 would transfer back to the province when they are deemed obsolete, with municipalities given the first right of offer to purchase the building at a negotiated price; and 
• updating the Municipal Grants Act and moving elements of the Municipal Financial Capacity Grant formula into regulation so it is more flexible and easier to adapt to the changing needs of municipalities, and enabling government to implement the new formula agreed to by municipalities.

Unique issues

CBRM has argued that with a population of 100,000, it is much bigger than the other municipalities affected by the bill and it has its own unique problems, issues that would be best suited to having its own funding deal and even its own charter, as does Halifax Regional Municipality.

Six of the 23 scheduled presenters at law amendments Monday were from CBRM.

McDougall-Merrill told the committee that CBRM wanted to meet with the province to discuss proposed options for a separate funding agreement but were told to vote on one of the new options presented in September or to fall under the overarching memorandum of agreement. 

John MacKinnon, the deputy CAO for CBRM, told the committee that if the province is intent on doubling the population by 2060, it has to invest in municipalities, starting with doubling the capacity grant.

CBRM councillor Steve Gillespie, a lifelong resident of the area, said CBRM residents pay the highest property taxes in the province.  

“We believe that any changes to the MOU that do not include a doubling of the amount are going to end up putting additional financial pressures on the municipality,” Gillespie said, adding the municipality has made deep cuts over the last number of years.

“There is nothing left to cut, unless we are willing to eliminate departments or to raise taxes and with the size of taxes people pay now, it’s just unfair.”

Jennifer Campbell, the chief financial officer for CBRM, said the municipality has unique challenges that have to be looked at from a different lens.

Long overdue

A number of speakers lauded the new agreement.

“Times have changed and responsibilities and expectations placed on municipalities have changed dramatically,” said Carolyn Bolivar-Getson, mayor of the Municipality of the District of Lunenburg.

“A new, modern agreement is long overdue,” Bolivar-Getson said, throwing the support of her municipality behind the new legislation. 

She said a survey and consultation process initiated by the Nova Scotia Federation of Municipalities (NSFM) put the wheels in motion for a new deal. 

Brenda Chisholm-Beaton, the mayor of Port Hawkesbury and NSFM president, said she is in favour of the bill and the legislative framework for a new service exchange MOU it represents.

“The current MOU is almost 30 years old and our member municipalities want a new service exchange agreement,” Chisholm-Beaton said. 

“We were pleased when the province agreed to this mandate in 2021 and even more pleased when the province included representatives from NSFM, elected municipal officials and CAOs to negotiate in an advisory capacity over an 18-month period of committee work.”

Chisholm-Beaton said NSFM surveyed members for MOU priorities, foundational for the overall committee work.

The bill will now go back before the Committee of the Whole House before going to its final vote.