Halifax considers tax increase in 2015 budget

Halifax regional council is moving forward with preparations for next year's budget and endorsed a proposal by finance staff to prepare a budget based on a 1.8 per cent increase in the average tax bill for next year.

Despite agreeing to a budget proposal based on a tax increase, some councillors expressed concerns about the impact on taxpayers.

Home sales are declining and development is slowing in the city, a main source of revenue for the Halifax Regional Municipality. Property assessments are capped by the province, again affecting the city's main source of revenue.

One option discussed at Tuesday's meeting was to trim capital projects. Coun. Bill Karsten said that was easier said than done.

Keeping a tight watch on hiring was another scenario debated by councillors. Many city jobs have been left unfilled, except for bus drivers. Coun. Waye Mason said that already had some consequences.

"In some cases we may not be able to meet the outcomes with the way we're handling the money and vacancies," he said Tuesday. "It's not about growing the bureaucracy, it's about meeting service standards."

Service standards are also a concern for Coun. Steve Craig.

"I would like to know what the status quo of service standards is this," he said.

"What is our core business? What do we do for our citizens? The budget being proposed, is there a status quo service standard? Is there a reduction in the service standard, is there an improvement?"

The idea of trimming services upset rural councillors, including David Hendsbee.

"I think we are going to have to take a long, hard look in regards to hiring more firefighter personnel for our rural and suburban stations," he said.

"The recreational facility area rates for capital components as well as operational needs, as well as a need for fire service station staffing, especially in rural areas, as well as the other issues with transit with regards to Metro Link and Metro X services expansion those are critical factors that need to be discussed in this budget."

Regional council agreed on two scenarios for next year's budget: a 1.8 per cent increase in the average tax bill or a zero per cent increase.

The proposed capital budget for next year will be ready for debate in December. Individual departments will present their numbers in mid-January.

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