Clarification
A STATEMENT BY MAYOR PETER KELLY REGARDING HRM FINANCES
(Wednesday, February 26/2003)-- Halifax Regional Council has made no decision on whether or not the General Tax Rate should be increased, decreased or remain at its current level for the coming fiscal year.
Certain media reports this morning may have left the residents of HRM with the impression that a tax rate increase is a done deal. That is not only erroneous, it is premature and misleading.
Also, in a front page story of one of the daily newspapers, remarks by Chief Administrative Officer George McLellan were taken out of context regarding the municipality's financial situation. Mr. McLellan's statement that "we're in hard shape" was a reference to HRM's infrastructure, not its overall financial picture.
What Mr. McLellan did say was that the municipality is very well managed and the residents of HRM are getting very good value for their tax dollar--- but the time has come to re-invest some of our new tax dollars into the repair or replacement of aging infrastructure.
The article also failed to mention that HRM has recorded a surplus in its Operating Budget each year for the past three years, and that Regional Council has provided for modest decreases in the General Tax Rate each year, for the past three years.
But in spite of this exemplary performance, both Council and staff recognize that some taxpayers have paid more in total tax dollars due to increased assessments. However, it must be understood that HRM has retained only that portion of the increased assessment roll to cover the cost of inflation and retained the revenues generated from new construction. It did not take the entire amount of additional tax dollars generated by the overall increase in assessments.
HRM has been living within its means and coming in under Budget. In addition, it has been reducing total debt from $347 million down to below $300 million and steadily increasing Reserve balances. We will continue to do so.
However, in its presentation to Council last evening which was broadcast on the local community cable channel, both Mr. McLellan and staff made it quite clear that Council will be facing some serious choices this year in approving a new Budget.
Although new growth and increased assessments are providing the municipality with additional tax dollars, new housing demands new services. HRM must also now address the ongoing challenge of aging infrastructure. Not only must it provide new services to new subdivisions and neighbourhoods, it must try to maintain or replace streets and roads, sidewalks and other infrastructure that have deteriorated over the years due to heavy usage. Their life cycles have passed and they now must be replaced. This will take more money.
Council is aware of the challenges that lie ahead and will be closely reviewing the proposed Operating and Capital Budgets during the week of March 17th.
Thank you.
