Halifax council votes in favour of 1.9% property tax hike

Halifax regional council has voted in favour of allowing finance officials to prepare next year's budget based on an 1.9 per centincrease to the average homeowner's tax bill.

Finance manager BruceFisher told councillorsdebating the issue Tuesday that the hikewas necessary because of declining revenue and increased salary awards for police and firefighters.

Slower growth in the commercial sector means property tax revenue is poised to be$4.5 million less than expected, andtransitfares are also expected to decline by $1 million.

Meanwhile, an arbitration award for the police means their salaries will total $8.5 million next year. Since firefighters automatically get 95 per centof whatever police officersare paid,they will also be getting abump in the last year of their contract that amounts to $1.4 million.

Council alsoagreed to a new standard that requires four firefighters per engine. Thechange alone means $3 million in additional costs.

The tax proposal comes after city staff trimmed $8 million in order to balance next year's books. Those efforts will continue, said Jacques Dub, HRM'schief administrative officer.

"I don't know if we can find more savings, so we're beingconservative," he said.

14-1 vote

The 1.9 per cent increase will raise the average homeowner's tax bill by $35.The average single-family homeowner pays $1,874 in annual property taxes.

Council was already expecting the budget for 2018 to include a tax increase of 1.6 percent.

The vote to direct staff to prepare the 2018 budget with the increase was 14-1, with Coun. ShawnClearybeing the only councillor to voteagainst the proposal.

"There's one well," said Clearly. "And there's only so many times different levelsof government can go to that well."

Mayor Mike Savage andCoun. Steve Adams were absent fromthe chamber at the time of the vote.

Given the arbitration awardfor policeand the relatedhike for firefighters,Coun.Steve Craig thinks the tax increase is unavoidable.

"We're in the $14- to $16-million range for no change in service," said Craig."So to say we'll hold the line on taxation or find savings to cover that, I don't think that's realistic."