Nearly all N.S. municipalities in healthy financial shape for first time in years
Nearly all Nova Scotia municipalities are in a strong financial position, with some towns successfully turning around their financial troubles for the first time in years.
According to the province’s most recent financial indicator report for 2022-23, only the Cape Breton Regional Municipality (CBRM) was identified as being at “high risk for fiscal instability” out of the 49 municipalities in Nova Scotia. However, CBRM has made significant improvements in its debt-servicing costs, improving its overall financial outlook.
“It’s fantastic news to hear that all municipalities are doing well,” said Mayor Pam Mood, who is also the president of the Nova Scotia Federation of Municipalities. While acknowledging that each area is unique and some municipal leaders have raised concerns about the assessment tool’s accuracy, Mood emphasized the importance of ensuring that things are on track financially.
The influx of new residents moving to Nova Scotia during the COVID-19 pandemic has been a major boost to the tax base of small and rural municipalities, according to Mood. The province’s population has grown to 1,080,418 as of June, up from about 984,100 in early 2020, as reported by Statistics Canada.
In recent years, the number of high-risk municipalities has fluctuated from nine to four. One such municipality, the Town of Middleton, has made significant progress and is now considered a “moderate” financial risk. Mayor Gail Smith credited the hard work of council and municipal staff for the town’s turnaround, which included cost-cutting measures, encouraging development, and securing grants for major projects.
Smith highlighted the importance of having dedicated staff focused on economic development and housing initiatives to boost small towns’ growth. Middleton is currently working on a development plan for a 40-hectare piece of land that could accommodate 1,800 people, with a new 38-unit apartment building already under construction.
Other towns, such as Oxford and Trenton, have also improved their financial standings, transitioning from high-risk to moderate in the latest report. Meanwhile, CBRM has hired a consultant to conduct a financial audit to address concerns raised in provincial fiscal updates, with the report expected to be released in the fall.
Overall, the positive financial health of Nova Scotia municipalities reflects their resilience and commitment to fiscal responsibility, setting a solid foundation for future growth and development.
