NEWS RELEASE

HRM Council Defines Fiscal Health and its Measurement

(Tuesday, June 16, 2009) - Halifax Regional Council today approved new means of defining and measuring what fiscal health is to the municipality.

The move builds on the solid approach to financial management initiated over 10 years ago with the Multi-Year Financial Strategy, and the Economic and Finance section of the Regional Plan which was approved in 2006.

HRM will define Fiscal Health as the ability to:

• Meet existing financial obligations, both in respect of its service commitments to the public and financial commitments to creditors, employees and others;

• Continue to meet the needs of HRM’s citizens in the future by maintaining or enhancing the level and quality of services and programs and to finance new programs;

• And, to support HRM’s goals contained in the Regional Plan.

Debt and asset condition are the two key indicators of fiscal health, as approved by Council. Several other indicators that will essentially enhance performance measurement and augment current financial reporting practices will also be used.

Reporting on the key indicators will be included in quarterly financial updates to Council, said CAO Dan English.

“Anything that provides increased evidence of the transparency and accountability around HRM’s financial reporting is good news,” said Mr. English. “The most exciting result from today’s decision, however, is how we can use the key indicators to support strategic decision-making.”

Mayor Peter Kelly noted that some of the indicators already in use speak to the sound financial practices used by HRM, as evidenced by the municipality’s A+ positive outlook credit rating.

“The fiscal health definition and the indicators approved by Council will help ensure our continued strong fiscal health, and provide important information to support sound Council decisions that benefit the region,” said Mayor Kelly. “HRM has come a long way since amalgamation, and the sophistication of performance reporting is just one area where we are making great improvements.”

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Contact:

Mayor Peter Kelly
(902) 490-4010

Cathie O’Toole
HRM Finance Director
(902) 490-6308