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CBRM eliminates sewer tax, adds user fees despite opposition from some councillors

Despite opposition from some councillors, Cape Breton Regional Municipality has eliminated a property tax levy that paid for sewer services and has instituted user fees instead. Some say that means owners of high-value properties will no longer subsidize the cost for those with lower assessments.

New policy creates a tax break for owners of high-value properties, critics say

A pair of brown brick buildings with grey trim are shown with a series of pipes and concrete containers on the ground beside them.
Cape Breton Regional Municipality has eliminated a sewer service property tax and implemented user fees, in part to pay for new wastewater systems like the Sydney Harbour West facility. (Tom Ayers/CBC)

Cape Breton regional councillors have voted to eliminate a sewer tax on properties connected to a municipal wastewater system and replace it with user fees.

Some councillors say the tax break will unfairly benefit owners with high property values, while putting most of the cost on those who can least afford to pay.

But Coun. Darren Bruckschwaiger said the change is necessary to pay for hundreds of millions of dollars worth of improved sewage collection and treatment systems.

"This municipality ... the former towns and communities, we all dumped our sewer into the ocean. That has to stop," he said during Tuesday's council meeting.

Coun. Earlene MacMullin agreed.

"The majority of people I talk to want to see a cleaner harbour. This is the first step to do it and I'm totally on board with that and will it be an adjustment? Yes, just like water was, but I'm sure we'll get through it."

A bald man with a dark grey shirt and gold chain gestures with a pen in his hand while speaking into a microphone.
CBRM Coun. Lorne Green says removing the sewer tax will benefit owners of properties with higher assessed values and put the burden of paying on people who can least afford it. (Tom Ayers/CBC)

Until this year, properties onamunicipal sewer system have been paying 19 cents per $100 of their assessed property value for the service.

According to figures from CBRM staff, an average homeowner whose property is assessed at $120,000 will save $229.20 with the scrapping of the sewer tax.

The new user fees will be based on water usage and staff figures show an average water user will pay about $279.

Coun. Lorne Green has opposed the move, saying people with higher-value properties will reap the benefit of the tax cut andcould end up paying the same amount for sewer services as someone with a lower-value property, if they use the same amount of water.

He said council was similarly criticized two years ago when it cut the general tax rate by five per cent.

"We had the same issue... when we gave the tax break. I remember ... a lot of people going on about how the big box stores were making the big savings," Green said,

"We're doing the exact same thing here, except we're doing it on the back of our residents."

A bald man with grey goatee beard and moustache and a dark suit jacket and light blue shirt looks over the top of his glasses.
CBRM Coun. Gordon MacDonald opposes sewer user fees, saying people in his district would be paying the same as those in other districts with newer wastewater facilities. (Tom Ayers/CBC)

Coun. Eldon MacDonald said propertieswith higher values havebeen subsidizing services for the rest through the existingsewer levy.

Coun. Gordon MacDonald also opposed the user fee system, saying people in his districtwould be paying for services, but their collection and treatment systems would remain substandard for years under federal wastewater regulations.

Coun. Glenn Paruch opposed the switch, saying some people are on a municipal wastewater system, but have their own well and would not have an accurate measure of water usage to determine a sewer fee.

Utilities manager Greg Campbell said people who are not on a municipal water system may have to rent a meter to establish usage rates, but staff are prepared to work with them if their sewer bills seem excessive.

Despite some opposition, the tax cut and new user fees were approved by a majority council vote and will appear on property tax bills and water utility bills later this year.

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