HALIFAX: HRM Mayor Andy Fillmore has asked the Auditor General of HRM and the provincial Auditor General to review Halifax Water’s spending practices.
That comes after the N.S. Regulatory and Appeals Board approved a rate application increase from the utility with adjustments. They are to come back to the NSRAB with the updated adjustments just before Christmas.
Fillmore said he did take issue with some of the board’s findings.
“While I agree with the majority of the Board’s findings, I am very concerned that the Board directed Halifax Water to explore whether HRM should absorb financial shortfalls that contribute to their accumulated deficit,” he said.
“That is not something HRM can responsibly consider without a full, independent audit.”
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He wrote to the HRM and N.S. AG’s about the issue.
“I have therefore written to the Halifax Regional Municipality Auditor General, and the Auditor General of Nova Scotia, to ask that they each consider a review of Halifax Water’s governance, financial management, and capital planning practices,” said Fillmore.
“We depend on them (Halifax Water) to support our region’s growing housing needs, economic development goals, and public health demands.
“We need to make informed decisions based on transparency and accountability to keep life affordable for residents. That is what these reviews will deliver.”
In his statement, Fillmore also said he has been saying for months that Halifax Water’s rate increase proposal amounts to rate shock which would put financial burden on residents during an affordability crisis. The decision by the NRAB shows they agreed.
“Further, the Board found that Halifax Water has paid insufficient attention to its fiscal health, has overestimated certain costs, and faces structural challenges that will directly affect ratepayers,” he said.
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The NSRAB approved Halifax Water’s application but found that adjustments must be made to the revenue requirements, which will result in a reduction to the overall rate increases initially proposed.
The updated adjustments are to be filed with the NSRAB by December 23, 2025.
Halifax Water’s request was driven by increased inflation, rising interest rates, depleted reserve funds, aging infrastructure and depreciation. This will be the first increase in Halifax Water rates since April 2023.
“We are reviewing the impact of today’s decision and remain committed to providing reliable service to our customers and the environment.” said Kenda MacKenzie, General Manager of Halifax Water.
“Our team works hard to provide reliable water, wastewater and stormwater service while controlling costs and maintaining good service for our customers.”
A compliance filing is expected to be filed by December 23, 2025 outlining the new rates.