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

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

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

The majority of property owners, about 80 per cent, will see a 1.9 per cent increase to the 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 million — will see a 1.8 per cent decrease 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 cent of properties by size are actually going down in value."

Meanwhile, Halifax is 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 as for 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 of items into next year's budget, which is already based on a 1.9 per cent increase to the average homeowner's tax bill.

One of the items seeking extra funding, for example, is increased ferry service on evenings and Sundays.

The heads of the business commissions for Downtown Dartmouth and Downtown Halifax both spoke in favour of maintaining more frequent ferry service, saying it was good for local businesses on both sides of the harbour.

Dartmouth Coun. Sam Austin asked regional council if some of the $12.1-million surplus could be used to pay for some of the items on that wish 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 and adding 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 on March 28. A final vote on next year's budget is expected on April 24.