Press Release
Municipal budget has cause for concern says Chamber
April 30, 2008- Halifax, NS – Increased taxes, economic assumptions and proposed changes to the debt policy in the 2008-2009 Municipal Budget are cause for concern says the Halifax Chamber of Commerce.
“These are issues that are of grave concern to our members,” says Valerie Payn, Chamber President. “Commercial tax payers pay almost four times more taxes than residential tax payers; this means that tax increases have an exponential impact on our membership.”
The general increase in taxes of 3.13% after factoring in increased assessment translates to approximately 6%. The average commercial property in Halifax, employing 25 people, pays about $35,000 annually in municipal tax therefore; a 6% increase translates to an increase of $2,100 in their tax bill.
The Chamber also feels the Municipality will run a deficit budget using unrealistic economic assumptions on rising oil costs. HRM’s budget uses oil prices of US$100 per barrel– the Provincial budget assumed US$120 per barrel – today the price is US$115.96 and is predicted to rise. “While indeed it is of the utmost importance to present a balanced budget, the expectation of the public is that Council present a realistic and transparent fiscal picture of our city,” says Payn.
HRM’s Debt Policy is an important part of the Multi-Year Financial Strategy. The Chamber noted during budget deliberations that changes are proposed to the Policy in June 2008. The Debt Servicing Plan which restricts the issuance of new debt to 80% of the debt retired in the same year, allowed HRM to decrease its debt by $100m over the last ten years to $247.4m. “While we realize the pressures of infrastructure requirements and increased costs, we fear that this budget has taken Council off the fiscally responsible course,” adds Payn.
“We cannot forget the goal of Halifax’s Economic Strategy when setting the city’s budget to “Create a Gung Ho Business Climate”,” says Payn. “The strategy’s goal is to ensure that a competitive tax rate and regulatory regime supports Halifax’s growth drivers. This budget takes the city away from this goal and does nothing to improve commercial taxes in Halifax.”
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For more information contact:
Janet Creamer
Communications Coordinator and Media Liaison
Halifax Chamber of Commerce
Office: (902) 481-1240
Cell: (902)499-6494



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