Flat tax rate or 11.2 per cent increase: Where could Halifax land?

Halifax council is looking at possible service cuts amid ongoing budget talks.

As budget deliberations continue in Halifax, an 11.2 per cent tax rate increase is the latest figure that’s on the table.

That’s why, on Friday, Coun. Shawn Cleary asked staff to bring back a budget with cuts across all business units that would result in a flat tax increase.

Councillors will debate the proposal when they return in March but if it does proceed, people will be paying more.

“A flat tax rate, given just the assessment list this past year, I think comes in at around four-point-something per cent increase on the tax bill,” Cleary said in an interview with CTV News.

Public Presentations

Much of Wednesday’s budget committee meeting was consumed by public presentations, with some willing to pay more.

“If me paying an extra 40 or so dollars a month means a city for me and others to live in, instead of one that doesn’t care for its people, sign me up,” one presenter said.

Others are afraid of the impact cuts could make.

“This is a tiny drop in the Halifax budget, but it would have a major detrimental effect on arts programs in the city,” another person said.

Transit under the microscope

To bring back a flat tax rate budget, staff would need to come up with $40 million in savings across all business units.

Coun. Sam Austin called the motion a “curveball.” He said he fears transit cuts could be put under the microscope despite council opting out when they were previously presented. Ideas for consideration could include stopping transit service at 10 p.m., eliminating Sunday and holiday service and reducing the Alderney Ferry runs to every half hour.

“I’m not in favour of doing things like cutting transit, cutting the services that people really rely on,” Austin said in an interview. “That is Pennywise but pound foolish.”

Cleary said transit cuts aren’t something he wants, either.

‘More investment,’ not less

Since the motion late Friday, Coun. Janet Steele said she’s been hearing from concerned voters. She said more focus is needed on transit service, not less.

“I think we really need to be finding a way that we can make more investment so that more residents can use transit for affordability, but also to address congestion and address the environment.

“I think we’re going to have to hunker down and focus on key municipal services,” Steele told CTV News. “This council has never agreed on what core services are.”

Cleary said there are more double-digit tax increases forecasted for the future.

“You’re looking at tax increases of 50 per cent in four years,” Cleary said. “That, I don’t think is sustainable as a city as we grow and also for residents who have to burden that extra 50 per cent increase.”

An increase between four and six per cent is possible for this year, Cleary said.

“Obviously, 10 or 11 or 12 per cent is unsustainable,” he said. “We can’t do that. Four or five or six, you know, I think most people could handle that.

“But the question is what is that right combination of investments and restrictions so that we don’t get above that?”

Austin said an eight or nine per cent increase could be realistic before people would really feel service cuts.

Budget committee meetings continue this week, with staff expected to come back on Cleary’s motion early next month.

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