HRM: Halifax Regional Council is in the process of developing the 2026/27 municipal budget.
At current levels of spending and based on Council discussions to date, the average residential tax bill would need to increase by up to 11.2% this year, 8.9% in 2027, 12% in 2028, and 12% in 2029.
Compounded, that represents an increase of more than 50% to the average residential tax bill in less than five years.
At the same time, the cost of servicing municipal debt is rising sharply. In order to meet debt repayment requirements for already-approved capital projects, it would cost taxpayers $44 million this fiscal year, or 4% of the municipality’s annual operating budget.
That amount is projected by municipal finance staff to double to $89 million (or 8%) by 2028, and to exceed $300 million (or 19%) within the next decade.
That is on top of rising costs to utilities, groceries, and other everyday essentials.
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Residents have been clear: they are expecting City Hall to make responsible decisions.
A recent survey found that 74% of residents want to limit tax increases – and 71% support cuts to staff positions to accomplish that.
In a move to minimize the potential tax bill increase, Mayor Fillmore put forward a motion requesting a staff report on reducing municipal wages and compensation costs over the next three years by up to 7%.
That motion was not approved by the Budget Committee.
Mayor Fillmore is providing the following statement:
“Residents are expecting us to have tough conversations and reduce costs – just as they are doing around their kitchen tables.
We’re looking at a potential 11.2% increase to the average residential tax bill this year and a compounded increase of more than 50% in less than five years. That’s why I’ve been pushing for a leaner, more disciplined budget: a bare-bones plan focused on core services; targeted cuts to grants and contributions; and cancelling or scaling back costly capital projects.
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“We have the opportunity to lower the potential tax bill increase even further by streamlining our administration, eliminating redundancies, and making sure municipal resources are focused on need-to-haves, not want-to-haves.
That’s why I put forward a motion asking staff for more information on reducing municipal wages and compensation costs over the next three years by up to 7%. This would not apply to frontline positions in transit, fire, and police.
Unfortunately, my Council colleagues did not support that motion.
As a result, it has become clear that holding a flat tax rate this year would instead require significant cuts to core, frontline services residents rely on – transit, fire, and police. And I am not willing to do that.
I’ll be bringing today’s wage and compensation reduction motion back to Council in advance of next year’s budget to give my colleagues and staff more time to consider its necessity.
I appreciate that this is a difficult conversation. But residents are asking us to have the same difficult conversations they are having every day to keep life affordable – not just this year, but for years to come.”