From ferries to parkland, Halifax council debates how to spend projected $12M surplus

As part of budget talks Wednesday, Halifax regional council endorsed a newcommercial tax rate for the proposed 2018-2019 budget and debated how to spend a predicted $12-million surplusfor the current fiscal year.

If the proposed commercial tax rate is approved, there will be different impactsdepending on the size of the property.

The majority ofproperty owners, about 80 per cent, will see a 1.9 per centincrease tothe average tax bill,about $172 per property.

But the largest commercial property owners in the municipality which have an average assessment value greater than $5 millionwill see a 1.8 per centdecrease in the average tax bill,about $3,154 per property.

Bruce Fisher, Halifax's manager of financial policy and planning, said the disparity is because "the top 20 per centof properties by size are actually going down invalue."

Meanwhile, Halifaxis on track to finish the 2017-2018 budget year with a $12.1-million surplus.According to finance officials, the main reason for additional funds is an increase in deed transfer tax.

They are recommending that the unexpected savings be used to offset overtime pay for Halifax's fire service, as well asfor money to be put into reserve funds for upcoming capital projects.

Budgetary wish list

But councillors are trying to shoehorn an extra $2 million worth ofitems into next year's budget, which is already based on a 1.9 per cent increase totheaverage homeowner's tax bill.

One of the items seeking extra funding, for example, is increased ferry service onevenings andSundays.

The heads of the business commissions forDowntown Dartmouth andDowntownHalifax both spoke in favour of maintaining more frequent ferry service, saying it was good for local businesseson both sides of the harbour.

Dartmouth Coun. Sam Austinasked regional council if some of the $12.1-million surplus could be used to pay for some of the items on thatwish list.

"We would still be being quite prudent if we peeled off $1 million," he said.

Coun. David Hendsbee also suggested spending some of the surplus on buying property for parkland andadding another $60,000 to the wish list for rural transportation needs.

But Mayor Mike Savage had a warning for council: "We still have to be vigilant that we're not funding everything that everybody wants."

Regional Council will debate the budgetary wish list onMarch 28.A final vote on next year's budget is expected onApril 24.