News Release
Proposed Operating Budget Includes 5.1 % Reduction in General Rate
(Tuesday, May 30/06)-- A federal and provincial election, skyrocketing gasoline prices, increased education and other provincial service costs-- combined with the growing demands for increased public safety, public transit and street/road improvements-- made preparation of the 2006/2007 Operating Budget one of the most challenging in recent years, Chief Administrative Officer Dan English said today.
In addition, Regional Council had instructed staff in January to bring in a Budget with a 5.1 per cent cut in the General Tax Rate to provide some cushion for HRM’s property taxpayers against the impact of steadily increasing provincial assessment values.
• As a result, the proposed Operating Budget for 2006/2007 is $628 million, which is 6.8 per cent higher in spending than last year.
• Average property taxes up 5.8%, about $67 a year on an average urban residential property
• Commercial tax rates have been adjusted to provide for the phase out of the Business Occupancy Tax. The net increase in commercial and Business Occupancy tax revenues is 1.4%.
• It is forecast that HRM’s debt will be reduced by $8.1 million this year to $273.2 million-- down from a high of $347 million in 1998/99.
• The budget calls for eight new Halifax Regional Police officers; 5.5 new RCMP officers and eight new firefighters for the rural portion of the Western Region.
• Infrastructure spending will increase in transit, traffic improvements, streets and roads, sewers, parks and playgrounds, community facilities and sidewalks.
• In addition, there will be $600,000 in new funding for youth and recreation programs and increased capacity to deal with the recommendations of the Regional Plan.
• More support to community groups operating HRM facilities.
• Improved park patrol.
• Enhanced sidewalk snow clearing in urban areas
The CAO said it has been a “see-saw battle” for staff since early February, trying to achieve the Council-directed 5.1 per cent reduction in the rate; and,at the same time, trying to provide enhanced service levels in police, fire, transit and streets and roads which Council had declared strategic focus areas for the coming fiscal year.
Mr. English said there is still some clarification needed regarding federal cost-sharing programs since the change of government in Ottawa, and the outcome of the current Nova Scotia election could impact on the municipal items included in the May Budget introduced in the Legislature prior to the election call, such as Mandatory Education.
The CAO said staff had reduced business unit costs by several million dollars during the budget review, through greater efficiencies and re-alignment of resources, based on Council priorities for the coming year.
Staff also reviewed current levels charged for fees, licenses and fines, and as a result, the proposed budget calls for increases in:
• Parking meter charges
• Parking meter fines
• The interest rate charged on deferred taxes
• A proposed administrative fee for tax sales, public auction
• Various permit fee increases
“There hasn’t been fee or license increases in some time, so we felt a review was necessary. We’ve fallen behind in a number of areas, compared to other municipalities, so we decided to bring them in line this year,” he said.
Mr. English said staff also made a detailed review of HRM’s revenue forecast process, and made revisions to projected 2006/2007 estimates of revenue from interest charges, transit, deed transfer tax, tax agreements and departmental revenues.
“These changes won’t impact the taxpayer, However, we believe this review will result in more accurate forecasting and will assist us tremendously in preparing future budgets,” he said.
Halifax Regional Council is scheduled to debate the proposed Capital, Operating and Reserve Budgets, beginning June 13.
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Dan English
Chief Administrative Officer
490-4026
