Regional Council approves 2023/24 municipal budget

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**** HRM Media Release

Regional Council approves 2023/24 municipal budget

Regional Council has approved the 2023/24 municipal budget of $1.2 billion – including an operating budget of $979.6 million (total municipal expenditures) and provincial mandatory contributions of $192.2 million – as well as a capital plan of $333.3 million.

The average residential tax bill is increasing by 5.9 per cent. The average single-family home tax bill will increase by $128 in 2023/24 to a total of $2,288. Due to the increase in property assessment values, the municipal residential tax rate will decrease from 0.794 to 0.760.

A new commercial taxation policy came into effect on April 1, 2023, changing the way that commercial property taxes are calculated going forward. Geographical tax boundaries for commercial properties will change from the previous urban, suburban and rural areas to one of five new tax areas, which are listed in Administrative Order 2022-003-ADM, Respecting Commercial Property Taxation in Certain Areas of the Municipality. As well, for each tax area, rates will vary by assessed value of the property, within three tiers of assessment. The rates for each tier and tax area will be updated on halifax.ca/taxrates by April 26.

Municipal tax-supported debt will remain stable at approximately $194.5 million in 2023/24, with tax supported debt servicing costs under five per cent of revenues, which is well below provincial guidelines for debt management.

“After months of thorough and open discussions and debate, Council today approved a budget that supports service levels, maintains a state of good repair of municipal assets, and positions us for continued inclusive and sustainable growth,” said Mayor Mike Savage.

Since 2015/16, the municipality’s population growth rate has increased significantly, transforming its economic position. The municipality’s fiscal approach must continue to adjust to both population growth and other financial realities. That said, as the municipality’s overall fiscal position is still very strong, the municipality is well positioned to withstand economic pressures.

“I am proud that Mayor Savage and Regional Council have approved a municipal budget that is fiscally responsible and allows us to continue meeting the needs of our more than 480,000 residents,” said Cathie O’Toole, Chief Administrative Officer. “I think we can all agree that this has been a challenging year, with unprecedented growth, increased demands for service and high inflation.  But I am confident that we have a comprehensive budget that will allow us to continue building a vibrant, safe and sustainable municipality now and into the future.”

Looking beyond 2023/24, steps will need to be taken, as outlined in the Fiscal Sustainability Strategy of November 2020, to ensure expenditure growth does not outpace our income.

The annual municipal budget funds all costs associated with servicing a growing municipality. This includes day-to-day municipal operations (for example, transit, police, fire, garbage collection, snow clearing, staffing costs), capital priority initiatives approved by Regional Council (for example, HalifACT, Cogswell District project, Integrated Mobility Plan), as well as capital projects and investments to purchase, construct, rehabilitate and replace municipal assets such as buildings, roads, active transportation, parks and bridges.

 

Key programs and capital projects

Halifax Transit

  • Electric bus procurement and Ragged Lake Transit Centre expansion – $40.7 million
  • Burnside Transit Centre eco‐rebuild – design phase – $20.8 million

Environment

  • HalifACT projects (for building retrofits, adaptation, etc.) – $20.7 million
  • HalifACT seven new staff positions – $412,000

Community safety

  • 15 additional rural fire fighters – $137,000
  • New Community Safety business unit created – $400,000
  • Framework for Addressing Homelessness – $1.1 million
  • New Navigator position – $125,000
  • Bedford West fire station – $16 million

Transportation

  • Cogswell District project – $35.6 million
  • Integrated Mobility Plan projects – $45.8 million

Recreation and community

  • Affordable access to recreation programming – $500,000
  • Community action planning for African Nova Scotian communities – $300,000
  • Arts grants funding increase – $100,000
  • Halifax Public Libraries’ collections – $300,000
  • Park recapitalization – $6.8 million
  • Park land development – $1.4 million

The Property Tax Exemption and Deferral Program, part of the Affordable Access Program, offers homeowners assistance with paying property taxes. Through the program, residents can apply for a property tax exemption, rebate, deferral of current year property tax and deferral of local improvement charges. There are also payment plan options that can assist taxpayers with personal budgeting.

For more detailed information on the 2023/24 municipal budget, visit: halifax.ca/budget

 

 

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