Halifax considering 7.6% increase in property tax bills

Halifax is facing the challenge of managing its growing population and ongoing projects, which has led to the need for a rise in property taxes. The city’s financial staff presented a proposed operating budget of $1.3 billion and a capital spending plan of $318.8 million for the upcoming fiscal year.

To cover the $70 million gap in new spending compared to the previous year, staff recommended increasing the property tax rate by 2.7% to $0.791 per $100 of assessment. This adjustment would result in a 7.6% increase in the average single-family residential tax bill for homes assessed at $338,500. This translates to an additional $189 per year or around $16 per month, bringing the total annual tax bill to $2,678.

Newly elected Mayor Andy Fillmore, who had campaigned on freezing the tax rate, expressed his intention to explore ways to minimize the proposed increase. However, Chief administrative officer Cathie O’Toole emphasized that the budget has already been trimmed significantly, leaving little room for further reductions without impacting essential services.

The influx of 11,000 new residents in the city has necessitated additional investments in infrastructure maintenance and services like transit, police, fire, and waste collection. O’Toole highlighted the need for continued funding to support the growing population and maintain essential municipal assets.

The proposed budget was described as “transitional,” with limited opportunities for significant changes due to projects and priorities set by the previous council. The new council will establish its strategic priorities later in the year, guiding future budget decisions.

In addition to property taxes, Halifax relies heavily on commercial tax revenues, with increases ranging from 7.3% for business park properties to 13.2% for industrial parks and 7.4% for downtown properties. Mayor Fillmore expressed interest in diversifying the city’s revenue sources to reduce reliance on property taxes, suggesting potential avenues like increased user fees and partnerships with other levels of government.

As departments present their budgets in the coming weeks, councillors will scrutinize spending and seek opportunities for cost savings or reallocation. Public input will also be solicited during budget committee meetings, providing residents with a chance to voice their concerns and priorities.

Key departments, such as public safety and operations, will be presenting their budgets in February, with major projects like street recapitalization and the new organics facility on the agenda. The final budget decisions are expected to be made in April, following a thorough review and deliberation process by the council.