HRM residents under water pressure from rate hikes

The new year has brought new burdens to Haligonians as utility costs are rising once again.  

Nova Scotia’s Regulatory Appeals Board approved in December an 18.1 per cent overall rate hike for the Halifax Water utility. On Jan. 1, rates went up 12.1 per cent, and in April, they will increase a further six per cent.

Deputy Mayor Patty Cuttell, along with the other board members, rejected Halifax Water’s original proposal of a 36 per cent increase. 

Cuttell, who has been sitting on the regulatory appeals board for five years, does not expect the approved hike to be well received by ratepayers. 

“Everyone is feeling the pinch,” she said.  

During an interview with The Signal after a budget committee meeting, Cuttell was asked about rejecting the original request for an increase and how a deal to reduce the proposed hike by half was finally reached.  

“There are Canadian provincial kind of standards that a wastewater treatment utility needs to reach. Those bodies determine what Halifax water can and cannot charge rates for,” she said.  

The regulatory aspect is only one part of this complicated process. Revenue and pressure from citizens and developers play a big role in determining what residents will have to pay.  

Halifax Water’s only source of revenue is ratepayers. But there is pressure to build new infrastructure and development to accommodate the city’s growing population.  

That’s not all. During the interview, Cuttell highlighted another factor of this process.  

“The other half of that equation is the debt servicing,” says Cuttell. “We kept rate applications low through the pandemic, which was a period of great uncertainty.”  

Halifax Water now has to balance its deficit, and HRM residents are paying the price.  

“There’s a tremendous amount of displeasure in the community about this,” said Mayor Andy Fillmore in an interview with The Signal at City Hall.  

Fillmore also mentioned other potential increases heading residents’ way, including an eight per cent power rate increase and a possible 10.9 per cent increase on the average property tax bill, driving up housing costs.  

“People are under siege with costs right now,” he said. 

In response to Halifax Water’s rate increase taking effect almost immediately after approval, Fillmore asked the municipal and provincial auditors general to undertake a financial and governance audit of the utility.  

“It’s my hope that the audit will help to illuminate for Halifax Water how they can navigate more effectively in what’s a very complex regulatory environment that they’re in right now.”  

Cuttell said she wants action and responsibility from all levels of administration.  

“I would like to see more support from the federal government and the provincial government on infrastructure costs. Because relying on ratepayers isn’t sustainable.”