Halifax Regional Councillors are set to begin deliberations on the municipal budget for the 2026/27 fiscal year this week, with preliminary reports indicating a substantial increase in property taxes. The budget document, released on a recent Friday, outlines a proposed budget increase of $88.9 million. This increase is expected to translate into an average property tax bill rise of 10.5 percent for residents.
Councillor Jean St. Amand expressed concerns regarding the proposed tax increase, stating, “That’s not the number we want to be at. We know we’ve got our work cut out for us because this is already a lean budget.” The sentiment reflects a collective apprehension among council members, acknowledging the challenges they face as they navigate this financial landscape.
Councillor Janet Steele elaborated on the situation, comparing it to the previous year's budget discussions. “I think last year when the initial documents were received at council, the proposal was around 8-point-something in terms of a percentage increase. This year, the situation is a bit more dire, because clear direction had been given on no new expenditures." This statement highlights the financial constraints under which the council must operate, with an emphasis on avoiding new spending initiatives.
Staff reports indicate that the primary contributor to this year's budget increase is compensation expenses, which account for $38 million of the total increase. These rising costs are attributed to collective bargaining agreements established recently. Steele provided a comparison for residents, noting, “Last year with our flat tax rate, the average single-family home property tax went up by $117. This year would look at an increase of between $270 to $280, so it’s a fairly significant increase." This figure demonstrates the tangible impact of the budget discussions on individual homeowners' finances.
It is a common practice for councils to initiate budget discussions with higher proposed figures than those ultimately adopted. This allows for negotiations and revisions to occur throughout the deliberative process before final approval is reached.
In an effort to mitigate the proposed tax hike, staff have suggested exploring potential savings avenues. Options such as conducting a staffing review or increasing fines and fees within the municipality have been identified as possible strategies to reduce costs. These recommendations aim to balance the budget while lessening the financial burden on property owners.
The Halifax budget committee's first meeting is scheduled for Wednesday, signaling the start of discussions that will play a crucial role in shaping the community's financial future. As councillors gather to address these pressing fiscal challenges, they will undoubtedly weigh the needs of the municipality against the potential resistance from taxpayers facing rising costs.
As deliberations commence, the outcomes will not only impact the budget for the upcoming year but will also set the tone for future financial planning within Halifax Regional Municipality. The council will need to navigate these complex discussions carefully to ensure that the community's needs are met while striving for fiscal responsibility.
