Budget debate begins at City Hall
Posted Apr 2, 2012 06:15:46 AM.
This article is more than 5 years old.
Halifax Regional Councillors will begin a lengthy debate on the details of the 2012-13 budget this morning, and there’s already plenty of discussion over the unprecedented reduction in tax rates.
Some councillors say they’re concerned the tax cuts included in the $921 million budget aren’t sustainable – but will get pushed through because of the upcoming municipal election.
“Remember this is an election year,” said Coun. Jerry Blumenthal (Halifax-North End). “Thank God I’m not running again. If I was running I’d want something like this.”
HRM has a proposed operating budget of $788 million for 2012-13, a $30-million increase attributed to growing wages and debt payments, fuel consumption and use of contractors.
The city has proposed a $132-million capital budget, down $13 million from last year.
“We’re not cutting money,” said Coun. Sue Uteck (Northwest Arm-South End) who argues council is spending beyond its means. “We’re actually spending another $30 million, but that’s to keep up with the current wages, negotiations, fuels, budgets.”
Under the proposed budget, residential tax rates for the average single-family home would drop by 5.5 per cent. Average property assessments rose by five per cent this year, meaning a smaller tax bill altogether.
Commercial tax rates would also drop by 5.8 per cent, saving the average business $200.
Some of the savings will come from more than 50 jobs vacancies which will not be filled.
Coun. Steve Streatch (Eastern Shore-Musquodoboit Valley) said CAO Richard Butts did exactly what council asked for, presenting a tighter, more efficient budget.
“The reduction in taxes without serious reductions in service levels should meet with everyone’s approval,” said Stretch. “The cutting of the Bookmobile this year will be a hard pill to swallow but at the same time we’re looking at putting new library services in some of the communities that will be affected.”
Blumenthal said the municipality is still spending too much on transit, as the city plans to hire some 55 new workers and purchase a fourth ferry.
“If I had my way, which will never happen, I would have free bus service and make sure people didn’t drive their cars,” said Blumenthal.
The proposed budget does not include an anticipated transit fare hike and adds new transit routes to the airport and Porters Lake.
Repair work on sidewalks, roads and bridges is set to go up 23 per cent and an extra $5 million is earmarked for snow removal.
Coun. Jennifer Watts (Connaught-Quinpool) said she’s concerned about the plan for community recreation programs.
“There have been some cuts there and so I really want to understand what the impact will be for our programming,” said Watts. “Currently we’re still waiting for a service review of the recreation area, which we haven’t received yet.
HRM’s community and recreation department is receiving $3.5 million less than what it currently receives under the proposed budget.
“We’re trying to look at many of the existing services and standards that we have for different programs and anticipating those, looking at new technology,” said Watts.
