News Release
Halifax Regional Council Receives Budget Update for 2011-12
(Tuesday, February 8, 2011) - Halifax Regional Council today received a financial update from Chief Financial Officer Cathie O’Toole. The update included some positive news on the outlook for 2011-12 and information on how the drafting of HRM’s 2011-12 budget is proceeding.
The budget gap of $13.9 million dollars projected in November has been reduced by $7.1 million dollars, and solutions are well in hand to address the remaining gap of $6.8 million.
Since the December presentation to Council, changes in financial forecasts, as well as a number of measures initiated, have resulted in a decrease in the projected expenditures, and an increase in the projected revenues - reducing the anticipated gap from $13.9 million to approximately $6.8 million. Today’s presentation outlined the reasons for this reduction, as well as further measures proposed to close the gap and balance the budget.
In December 2010, Council asked staff to balance the 2011-12 budget based on:
• Expenditure growth falling between the Consumer Price Index (CPI), currently at 2.9%, and the Municipal Price Index (MPI), currently at 4.1%; and
• A reduction in services of approximately $3 million and adjustment of the capital from operating budget based only on what can be realistically spent next year.
At that time, Council also asked staff to present the following three options in the draft budget.
1. Hold the general tax rate flat;
2. Allow for CPI growth;
3. Allow for growth between CPI and MPI.
Preliminary figures for each of these options were included in the presentation. Based on the information presented, a balanced budget for 2011-12 can be achieved within these parameters.
Additionally, the $3 million in adjustments in services can be achieved largely through cost savings and efficiencies, as the only items with any public impact have already been approved by Council - a small increase in user fees for sports fields, and the phase out of Visitor Information Centres.
While the Operating Budget is well in hand, O’Toole noted there are significant pressures on the Capital Budget, and that a healthy fiscal position does not reflect whether or not HRM is meeting the expectations of residents regarding service delivery, or making progress in halting the decay of existing infrastructure.
It is expected that a detailed draft budget for debate by Regional Council will be tabled in April 2011. Prior to budget tabling, further updates will be provided to the Finance and Audit Standing Committee of Council to enhance Council's involvement in the process; and HRM staff will be working to gather and analyze additional data.
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Contact:
Cathie O’Toole
Chief Financial Officer
Halifax Regional Municipality
490-6308
