Budget & Business Plans

BUDGET & BUSINESS 2020 - 2021 PLANS Pre-COVID-19 TABLE OF CONTENTS Organizational Chart & Map Executive Summary Introduction A Discussion & Analysis B MULTI-YEAR BUDGET AND BUSINESS PLANS PUBLIC SAFETY SERVICES: Halifax Regional Fire and Emergency C Halifax Regional Police & RCMP D PUBLIC SERVICES: Halifax Transit E Halifax Public Libraries F Corporate Customer Service G Parks & Recreation H Planning & Development I Transportation and Public Works J GOVERNANCE AND SUPPORT SERVICES: Office of the Auditor General K Chief Administrative Office L Finance, Asset Management & ICT M Human Resources / Office of Diversity and Inclusion N Legal & Legislative Services O FISCAL SERVICES P RESERVES Q GLOSSARY R APPENDICES S HALIFAX REGIONAL MUNICIPALITY CITIZENS OF HALIFAX REGIONAL MUNICIPALITY HALIFAX REGIONAL COUNCIL AUDITOR GENERAL CHIEF ADMINISTRATIVE OFFICER MAYOR’S OFFICE ADMIN STAFF COUNCIL SUPPORT BOARD OF POLICE OFFICE COMMISSIONERS CAO OFFICE HUMAN FINANCE, RESOURCES/ LEGAL & TRANSPORTATION CORPORATE HALIFAX HALIFAX ASSET PLANNING & PARKS & HALIFAX OFFICE OF LEG L ISATIVE & & CUSTOMER REGIONAL FIRE & REGIONAL MANAGEMENT DEVELOPMENT RECREATION TRANSIT DIVERSITY & PUBLIC WORKS EMERGENCY POLICE & ICT SERVICES SERVICES INCLUSION Fiscal Policy and Employee Litigation Business Services Parks Transit Project Planning Customer Deputy Chief, Executive Officer Planning Relations • • • Operations & Design Contact Centres Operations • • • Solicitor Services Regional Planning Program Support • • • • Deputy Chief Financial Organizational • • Services Bus Maintenance Road Operations Corporate Fleet Deputy Chief, • Reporting Development, Prosecutions Current Planning • • and Construction • Support and Patrol • Health & Safety • • Recreation Planning & • Corporate Logistics • Procurement • Risk & Insurance Infrastructure Programming Scheduling Traffic Facility Design & • Criminal • Total Rewards Services Planning • Management Construction Deputy Chief, Investigation Treasurer • • Resource Support • • Performance and • • Clerk’s Office Buildings & & Development Solid Waste Municipal Safety Administration Corporate Compliance • Resources Facilities • Planning Technical • Maintenance & Division Chief, OFFICE OF • Services Parking Operation Emergency DIVERSITY & Enterprise Asset • Management Management INCLUSION Corporate • Communications Capital Budget African Nova • • Scotian Affairs Organizational Real Estate Integration Office Performance • Excellence Grants • • Regulatory ICT Modernization • Cogswell Redevelopment Project EXECUTIVE SUMMARY In 2020/21 the Halifax Regional Municipality will realize strong economic and population growth. In preparing its 2020/21 budget, Regional Council has considered that economic growth in concert with the service and tax pressures faced by a growing city. Due to the demands of a growing population, for the first time, the Budget will top $1 Billion. The operating and capital budgets include improved municipal services with no tax rate increase for residential taxpayers and a modest increase for commercial taxpayers. Driven by strong immigration levels, the population is expected to grow by 1.1% to over 445,0001 individuals. Likewise, GDP, income and consumption are on track to perform well. Inflation is forecast at 2.2%, KEY HIGHLIGHTS putting additional pressure on municipal costs. In the past ten years the population has grown by 42,000 (a 10.6% increase), there are 22,000 new The Operating Budget is $1B and the dwelling units (a 12.5% increase), and inflation has increased nearly 19%. Capital Budget is $180M. Debt is flat at $235.7M. Reserve Balances are In 2020/21 the Operating Budget has been approved at $1 Billion. estimated to be $172M. Included in this is $168M of Provincial costs and $832M of Municipal costs. Ongoing pressures include compensation, increases to capital The Residential Tax Rate remains spending and inflationary pressures on goods, services and contracts. unchanged while the Commercial Tax Savings were achieved in fuel costs, debt and process efficiencies. While Rate increases only slightly. commercial assessment growth is soft, residential assessment related to apartments is growing strongly. Deed Transfer Tax revenues are The economy is relatively strong and outpacing property tax growth and have increased significantly. there are steady improvements in municipal service levels. As per the direction of Regional Council, the residential tax rate will remain unchanged while the commercial tax rate will increase slightly: Halifax is in a sound fiscal position • The average residential single-family home has increased in value with modest debt, strong reserve by 1.4 per cent to $245,800. The tax rate is to remain at 81.5 balances and competitive taxes. cents per $100 of assessment, leading to an average tax bill of $2,003. This means the average tax bill for a residential home will increase $27 or 1.4% over 2019/20. The average commercial property has increased in value by 1.0 per cent to $1,439,500. The tax rate is to increase to $3 per $100 of assessment, leading to an average tax bill of $43,185. The average commercial property will see its bill rise $585 or 1.4 per cent over 2019/20. In 2020/2021, Commercial taxpayers will fund 37.6% of property tax revenues. The Gross Capital Budget for 2020/21 is $180 Million, an increase of $16 Million from 2019/20. Included in the Capital Budget are funds for both Asset Renewal ($133.3M) and Growth ($46.6M). Significant investments are being made in the Integrated Mobility Plan, Transit’s Moving Forward Together Plan and other Transit assets, Roads and Streets, and Information Technology. Total debt levels for 2020/21 is to remain the same as in 2019/20. Debt had peaked in 1998-99 at nearly $350M and now stands at $235.7M, a reduction of close to $100M. This change represents an average decline in HRM debt of 1.6 per cent per year since 1999. In 2020/2021 principal and interest payments supported through property tax total 3.5 per cent of Municipal Expenditures, well below the 15 per cent ceiling established for municipalities by the Province as an indicator of solid financial health. Reserve balances remain strong. In 2020/21 Reserve balances are projected to total $172M and, due to withdrawals for capital investments, are projected to decline by 2023/24 to $130M. Because of Regional Council’s commitment to fiscal discipline, HRM is well positioned for long-term prosperity and sustainability. 1 Source: Canmac Economics INTRODUCTION TO HALIFAX PUBLIC SERVICES THAT SUPPORT A DYNAMIC AND INCLUSIVE REGION The Halifax Regional Municipality (HRM) is the vibrant, thriving economic hub of Canada’s East Coast. For more than a decade, the municipality has exercised fiscal discipline and organizational capacity to deliver on increasing public services needs, establishing a solid foundation for future prosperity. The approach continues to deliver value for citizens and business. In the latest Budget Survey (2019), 65 per cent of respondents are at least satisfied with the delivery of all the services provided by the Municipality. Meanwhile, 85 per cent of Halifax Waterfront respondents to the most recent published Business Confidence Survey noted that they are optimistic about their current and future economic prospects (Halifax Index, 2018). OVERVIEW OF HALIFAX REGIONAL MUNICIPALITY Halifax Regional Municipality (Halifax) is Nova Scotia’s largest and most diverse municipality, with approximately 46 per cent of the provincial population residing within it and approximately 52 per cent of provincial GDP1. The region has significant suburban and rural areas, with a considerable urban mix, and a population of 440,348 according to Statistics Canada. Halifax Census Metropolitan Area (CMA) has experienced population growth well above its historical trend in the last 5 years. The land area of the municipality is similar to that of Prince Edward Island (PEI) and is dotted with coastline, islands and lakes. As the largest city east of Montreal, Halifax serves as the regional center for nearly three million people2. This context allows the municipality to prosper among stronger competitors and boast many attributes typical of much larger cities. Halifax has six degree-granting institutions and three community college campuses, leading health centers, Canada’s seventh busiest airport, one of its most prominent container ports and a wide variety of cultural, educational, scientific, financial services, Halifax City Hall 1 Source: as calculated using Statistics Canada, Census, 2016. 2 Source: as calculated using Statistics Canada, Census, 2016. Introduction A1 and defence establishments. A top mid-sized North American city, Halifax is considered one of Canada’s “hub” cities. The Mi’kmaq First Nations were the original people to inhabit the Halifax region. The French became the first European settlers briefly in the 1720s before the British, attracted by Halifax’s large, ice-free harbour, landed in 1749. Nine years later in 1758, an election for the Nova Scotia Legislature took place in the town of Halifax, a forerunner to the later emergence of democratically elected governments in North America. Although originally founded by the English, early settlers included Swiss, Irish, Jews, Germans, New Englanders and United Empire Loyalists. Blacks arrived both as Loyalists and later, as Refugees, during the War of 1812, settling in Preston, Hammonds Plains and the greater Halifax area 3. Today, the African Nova Scotian community continues to contribute to the rich history

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