Average tax bill in HRM may be increasing by $205

HALIFAX, N.S. — The average tax bill may be going up by over $200, according to the latest budget update.

In November, HRM staff said there would likely be an increase of 9.7 per cent to the average tax bill to make ends meet for the 2024/2025 budget.

But in an update on Wednesday, Cathie O’Toole, HRM’s chief administrative officer, said that changes have been made that will lower the tax burden from 9.7 per cent to 8.9 per cent.

“The projected budget increase will see the average residential tax bill increasing by approximately $205 and the residential tax rate would increase by two per cent,” O’Toole told the budget committee during a virtual meeting on Tuesday.

That $205 number is based on an average assessment of $323,000.The average value of a single-family home has increased from $302,700 to $323,300, which is 6.8 per cent.

She said HRM is facing inflationary pressures and population growth, causing “significant cost increases for this budget cycle.”

HRM is looking at a 2024/2025 budget of $1.2 billion.

Mayor Mike Savage cautioned that there’s a lot of work to be done before any number is solidified.

In the coming weeks, each department will present their budgets in front of the committee and there are opportunities for public input at every meeting.

CFO Jerry Blackwood said since November, there have been several changes made to the budget saving the municipality $6 million. These include:

• $900,000 more from an assessment roll “lift.”
• $1 million in vacancy management.
• $1 million increase in investment income.
• $1.7 million in the public works budget for solid waste changes.

Speaking of the assessment roll (the list of properties where HRM collects property tax from), Blackwood pointed out that there has been a drop in dwelling unit growth. He said last year there were about 5,000 new dwelling units (which are new, finished units) on the assessment roll, this year there are about 2,000. He added that these are not to be confused with the number of building permits and housing starts, which are still going very strong.

The capital plan

Also on Tuesday, the budget committee dug into the capital plan — that’s the budget for building and maintaining the municipality’s infrastructure — for the upcoming fiscal year and into 2028.

O’Toole said this is the third consecutive year that the average capital budget has surpassed $300 million. She added it’s a “notable increase” from the previous average of $150 million.

“This growth is fueled by the imperative to address aging infrastructure and escalating service demands,” she said.

Crystal Nowlan, HRM’s director of asset management, said that while the work prioritized for next year is coming in at $309 million, the carryover work (from other years) combines to a total of $686 million in the 2024/2025 fiscal year. 

But on the positive side, several projects — like the Mill Cove Ferry Terminal — are contingent on cost sharing with other governments.

Coun. Waye Mason (Halifax South Downtown) hinted that the funding may be secured but they’re waiting on a joint provincial/federal news conference to announce it publicly.

Nowlan said that HRM’s population growth since 2016 has outpaced infrastructure planning, and the actual population is eight years ahead of expectations set out in the  2014 regional plan.

She said that while capital budgets are now at about $300 million a year on average, it won’t be too long before that average will double and $600 million will be the new norm.