News Release
Mayor Kelly to Attend Hub Cities Conference This Weekend
(Thursday, September
16/04)-- With the implementation of a federal revenue sharing program
for municipalities, Halifax Regional Municipality could start to
reduce an ever increasing infrastructure gap and develop a sustainable
and more environmentally friendly transportation infrastructure,
Mayor Peter Kelly said today.
Mayor Kelly, who will be attending the Hub Cities Mayors Summit
in Toronto on Saturday, said “HRM has a large capacity gap,
and the state of our municipal assets is poor. Long-term, sustainable
funding for municipalities is a cornerstone to the continued success
of Canadian cities.” The infrastructure gap (funds required
to repair, restore or replace aging infrastructure) across Canada
is more than $60 billion today and increasing by more than $2 billion
annually.
He said Prime Minister Paul Martin’s commitment to provide
municipalities a share of the federal Fuel Tax ( ramping up to 5-cents
a litre over a phased-in period) was a great step forward in this
respect because it would give municipalities of source of predictable
funding.
The Mayor said transportation infrastructure and environmental protection
are among the key priorities for HRM. A formula for Fuel Tax sharing,
or any mechanism to share revenue with municipalities, is imperative
to the municipality’s ability to address critical transportation
needs.
“HRM supports a formula that is sustainable over the long-term
and considers population
numbers and the associated demands on infrastructure, “ Mayor
Kelly said. “We are committed to working with other levels
of government and community organizations on areas of common priority
to improve social, cultural, environmental and economic sustainability
in the region. By working together, we are a strong voice for change.
The Mayor said four provinces-- British Columbia, Alberta, Saskatchewan
and Ontario-- have already committed to work with their cities and
to put in place an agreement to facilitate the distribution of federal
funds to municipalities. HRM looks forward to working with the Nova
Scotia government for a similar arrangement.
Mayor Peter Kelly
(902) 490-4010
(902) 222-9999 (cell)
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Federal Revenue Sharing
Implications for HRM
September 2004
Overview:
With the implementation of a federal revenue sharing program for
municipalities, HRM could start to reduce an ever increasing infrastructure
gap and develop sustainable and environmentally friendly transportation
infrastructure in the region. HRM has a large capacity gap, the
state of municipal assets is poor. Currently, there is limited capability
to address these problems; although HRM financial situation, after
much hard work, is solid.
Transportation infrastructure is a priority to HRM. A formula for
fuel tax sharing, or any mechanism to share revenue with municipalities,
is imperative to the municipality’s ability to address critical
transportation needs. Any formula should be structured to encourage
environmentally friendly development.
HRM is a growing and thriving
municipality:
• HRM has 44% of Nova Scotia’s total employment, and
40% of the total population
• HRM has a population of 370,000 and it is expected to continue
it’s steady growth, adding an additional 100,000 residents
in the next 20 years
• HRM is working an effective multi-year financial strategy
that includes a debt management plan - retiring more debt each year.
• HRM has received a bond rating of “A” from Standard
& Poor’s
• HRM has strong per capita income and GDP
HRM faces many realities
limiting flexibility to deal with critical needs:
• HRM is dependent on property tax for over 75%of revenue
• HRM receives 1.4% of total revenue from the provincial government
• HRM has mandated expenditures from province of over 15%
of total revenue
• HRM has a significant infrastructure gap, valued at $30
million per year
HRM’s role in creating
a sustainable municipality:
HRM applauds and encourages the federal government’s dedication
to urban renewal and the cities agenda. Municipalities have a significant
role to play in ensuring any program is a long term success. HRM
takes the role seriously. Key to reducing and eliminating the increasing
gap is sustainable development and growth. HRM is well on its way
to a formalized regional plan that will guide development to promote
a healthy sustainable vibrant community. A primary outcome of regional
planning is to ensure smart growth and diminish infrastructure and
environmental impacts. For example, growth on central water and
sewer is key to sustainable development. In Halifax in the last
5 years, approximately one half of new homes built have individual
well and septic systems. HRM is working aggressively to remedy situations
like this.
Transportation is a priority:
Like many municipalities, transportation infrastructure is a priority
for the region. HRM is focussed on resolving transportation challenges
and accommodating new traffic demands in a manner which is environmentally
responsible. In conjunction with the new Bus Rapid Transit program
HRM is considering further options to get people out of cars and
improve traffic bottlenecks, reduce emissions, and provide opportunities
for alternative fuel sources.
Not only are there opportunities for improving transportation challenges
through focus on municipal infrastructure, but these initiatives
are closely linked to other areas of healthy urban living. Halifax
is focussing, through regional planning, on creating open space
corridors - this includes active transportation planning and heritage
conservation and has a significant impact on quality water resources.
Recognizing differences
between municipalities:
Each province has many municipalities within its boundaries - and
no two municipalities are the same. Different regions have different
mandates, responsibilities, revenue capacity and expenses. Municipalities
have a role to play in ensuring differences are recognized. When
such differences are known and understood, there will be more opportunity
for municipalities to partner within and between levels of government
in the development of programs that best meet the needs of the individual
municipality. Government programs should recognize that different
jurisdictions have different strengths and weaknesses and provide
flexibility in implementation.
Conclusion - long term funding
for municipalities:
Long-term, sustainable funding for municipalities is a cornerstone
to the continued success of Canadian cities. The federal commitment
to provide municipalities a share of the fuel tax was a great step
forward in this respect as it would give municipalities of source
of predictable funding. HRM suggests a formula that is environmentally
sustainable and considers population and the associated demands
on infrastructure. A consumption based formula has potential disincentive
effects.
Working together for change:
Cooperation and coordination are key to positive change. HRM is
committed to working with other levels of government and community
organizations on areas of common priority to improve social, environmental,
cultural and economic sustainability in the region. By working together,
we are a strong voice for change.
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