CBRM should have its own municipal funding deal with province, MLAs argue

One of these things just doesn’t belong here, two Cape Breton MLAs say of the provincial government’s intention to group CBRM with 47 other municipalities for the purpose of a new partnership agreement with the province.

“CBRM with a population of 100,000, created at the same time as HRM, with many significant challenges when it comes to population growth is being compared to communities of one-tenth its size,” Derek Mombourquette, the Liberal MLA for Sydney-Membertou, said at Province House on Wednesday.

“We’re happy for the other communities if the deal works for them but what CBRM has been saying publicly is that it is not a good deal in the long run for the Cape Breton Regional Municipality,” said Mombourquette, the opposition House leader.

“They see a decrease in the capacity grant that is provided and they have other concerns around the negotiation that they feel is inevitably going to raise taxes in the (municipality) and they want a separate deal.”

Mombourquette and Kendra Coombes, the NDP representative for Cape Breton Centre-Whitney Pier, have been promoting that argument vigorously at the House since the legislation, was introduced by Housing and Municipal Affairs Minister John Lohr last week.

“It’s an unnecessary fight but a fight this premier and the minister have chosen to pick with CBRM,” said Coombes, a former CBRM councillor.

“This whole MOU, not speaking to CBRM, not listening to what they were saying, was a really bad move.”

The provincial government referred to the legislation as the most significant update to how municipalities work with the province in almost three decades.

“Municipalities are key partners in growing our province,” Lohr said in introducing the legislation. “We are making historical changes and creating new opportunities to help municipalities support the changing needs of Nova Scotians and ensure our communities are sustainable.”

Municipal grants

For the municipalities covered by the renegotiated agreement, the government said the legislative amendments would include: 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, enabling government to implement the new formula agreed to by municipalities; removing the requirement under the Corrections Act for municipalities to make an annual contribution towards corrections; and removing the requirement under the Housing Supply and Services Act for municipalities to pay a portion of the net operating losses for public housing.

Coombes said CBRM is much bigger than the other municipalities involved and it has its own unique problems, issues that would be best addressed by providing the municipality, the second biggest in the province, with its own governing charter, as does Halifax Regional Municipality.

Coombes said the formation of CBRM was a forced amalgamation and that no debts were forgiven at that time, leaving CBRM to carry the debts of the small towns since amalgamation, with no relief.

“Other areas that have amalgamated have received either debt relief or some other incentives to amalgamate,” Coombes said.

The MLA said the residents of CBRM will be punished for a fight the premier wants to pick with a municipal government.

“Right now, CBRM receives about $15.3 million in the Municipality Capacity Grant,” known colloquially in CBRM as equalization. 

“After a few years of it being frozen at $15 million, this is going to slash it to just over $13 million,” when the municipality was actually expecting a bigger pot of money, she said.

“What is going to happen is the CBRM may not have enough money for services,” Coombes said. “What is going to happen if they have to raise taxes on an already over-taxed population who can’t afford another tax?”

Coombes said the provincial government is telling municipalities that they can continue to charge residents for services that they are no longer collecting for or that no other municipality in the province is collecting for.

“To me, that’s unethical,” Coombes said.

The growing rift between CBRM and the province was further exacerbated this week when Lohr sent a letter to all the other municipalities under the MOU umbrella, except CBRM, asking administrators to contact their colleagues in CBRM and encourage them to accept the new funding deal.

“I can appreciate what the minister is trying to do with this but you have one community that has said publicly that the conversations have gone very poorly with the province and now what we are seeing is correspondence going to all of the (municipal) CAOs across Nova Scotia with the exception of the CAO of CBRM, which in my opinion is very unprofessional and has created a huge rift between the province and CBRM,” Mombouquette said. 

A separate MOU

Mombourquette on Tuesday tabled a bill that called for the completion of a separate MOU for CBRM, followed within a few months by a new government charter to cover the municipality.

Coombes said slashing the capacity grant is contrary to what the grant was designed for, forcing a steady or increased CBRM tax rate without providing the services that go with that level of taxation.

“If I had my say, we would take the CBRM out of this agreement,” she said. “That is something that could be done now. I don’t know if the premier or minister want to do that. The ball is going to be in their court.”

Mombourquette said this fight doesn’t have to exist right now.

“Go back to the table, negotiate a separate MOU with CBRM,” he said. “In the long run it’s not a good deal for CBRM. You’re seeing a decrease in resources over the life of the contract. 

“All that CBRM is asking is that they want a separate MOU. The minister indicates they are willing to do that, so somebody pick up the phone and let’s get it done. … This could all be taken care of if the premier’s office just picked up the phone and called CBRM and said let’s have a conversation.”

Mombourquette said what happens next depends on what the government House leader calls for business.

“We’ll continue the debate and we’ll eventually get to third reading,” he said, and then it’s on to law amendments and back to the Committee of the Whole House.

“They have a majority government. They have indicated they are going to pass this bill. All we are saying is take a pause on CBRM.”