Regional council approves motion for service review and funding strategy

Halifax regional council has unanimously approved a motion aimed at finding ways to alleviate some of the financial pressures facing the municipality.

The motion follows a staff report that includes several recommendations, including a review of services and a directive for the chief administrative officer to return to council with a corporate user fee policy and pricing strategy.

“They call for a formal service review framework, so that we know which services are core, which are discretionary, and how each align with our priorities,” said HRM Mayor Andy Fillmore. “They call for a user fee and pricing strategy so we can be fair, transparent and consistent in how we recover our costs.”

The report also asks the mayor to write a letter to the province, requesting a formal review of service exchange and mandatory contributions, as well as a funding agreement that provides HRM with a share of HST revenue or equivalent ongoing funding.

A separate amendment from Coun. Sam Austin changed a line that would have seen more limitations put on public hearings during the budget process.

Halifax’s finances are ‘vulnerable’

This was brought on by a staff report that indicated to councillors that the municipality’s reserve funds — what it can use for extra expenses or emergencies — was below recommended standards.

Staff flagged that the levels fell below 3 per cent of the operating budget, but they should be around 16.7 per cent.

Without those reserves, the report notes it “poses significant financial risk during unforeseen events.”

Staff also called out how the city is having a “growing reliance” on external sources to fund projects, rather than “stable” tax-based contributions.

The strategic initiative reserve, the bucket of money for planned projects like climate action, is facing “potential shortfalls” if land sales proceeds don’t meet expectations.

The report also notes that there are “redundant” reserves; putting aside money for similar projects resulting in opportunities for reallocation.