BUDGET COMMITTEE (STANDING COMMITTEE OF THE WHOLE ON BUDGET)

MINUTES

Wednesday, February 26, 2025, 9:30 a.m.; Reconvene If Required February 28, 2025 at 9:30 a.m.

Council Chamber, 3rd Floor City Hall, 1841 Argyle Street, Halifax

Present:

• Councillor Cathy Deagle Gammon, Chair
• Mayor Andy Fillmore
• Deputy Mayor Tony Mancini
• Councillor David Hendsbee
• Councillor Becky Kent
• Councillor Trish Purdy
• Councillor Sam Austin
• Councillor Laura White
• Councillor Virginia Hinch
• Councillor Shawn Cleary
• Councillor Kathryn Morse
• Councillor Patty Cuttell
• Councillor Janet Steele
• Councillor Nancy Hartling
• Councillor John Young
• Councillor Billy Gillis
• Councillor Jean St-Amand

Staff:

• Jerry Blackwood, Executive Director of Finance & Asset Management/Chief Financial Officer
• John Traves, K.C., CD, Municipal Solicitor/Chief Governance Officer
• Iain MacLean, Municipal Clerk
• Krista Vining, Team Lead, Legislative Assistants

The following does not represent a verbatim record of the proceedings of this meeting. 

The agenda, reports, supporting documents information items circulated and video (if available) are online at halifax.ca. 

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1.

CALL TO ORDER AND LAND ACKNOWLEDGEMENT

The Chair called the meeting to order at 9:34 a.m. and acknowledged that the meeting took place in the traditional and ancestral territory of the Mi'kmaq people, and that we are all treaty people. 

2.

APPROVAL OF THE MINUTES - February 5, 2025

MOVED by Councillor Austin, seconded by Councillor Mancini

THAT the minutes of February 5, 2025 be approved as circulated. 

MOTION PUT AND PASSED. 

3.

APPROVAL OF THE ORDER OF BUSINESS AND APPROVAL OF ADDITIONS AND DELETIONS

Additions: None 

Deletions: None 

MOVED by Councillor Austin, seconded by Councillor Morse

THAT the agenda be approved as presented. 

MOTION PUT AND PASSED. 

4.

CALL FOR DECLARATION OF CONFLICT OF INTERESTS

None

5.

PUBLIC PARTICIPATION

Ursula Eckoldt, Dartmouth, Urchin Prop Management expressed concern with increasing property tax and spoke to the provincial rental cap having financial strains on commercial and residential property owners, in addition to rising operating costs and inflation. Eckoldt noted the impacts on businesses from COVID-19, increased rates, reduced foot traffic from panhandling, and the importance of businesses on community character, the economy and tourism. Eckoldt asked Budget Committee to consider a broader tax increase and responded to questions of clarification from Budget Committee. 

Kevin Russell, Executive Director Rental Housing Association spoke to rental housing and the impact any tax increase would have on small owner operators, resulting in rental increases. Russell commented on the provincial rental cap and asked Budget Committee to adopt a 0% tax rate increase. Russell responded to questions of clarification for Budget Committee.

Mike Burgess, Dartmouth spoke to the circumstances landlords faced from rising costs, the provincial rental cap, and working to keep units affordable while maintaining a profit. Burgess suggested an incase in property taxes would put greater pressure on property owners to sell. 

Ben MacLeod, Halifax spoke to the Municipality's Strategic Plan, specifically around safety, the Occupational Health and Safety Act, Diversity and Inclusion, and sought clarification on COVID prevention measures in workplaces after March 2022. MacLeod spoke to the Canadian Centre for Occupational Health and Safety and suggested the Municipality implement evidence-based decision making to ensure workplaces were safe and inclusive.

Colin May, Dartmouth spoke to Halifax Regional Police budget, violent crime statistics, prevalence of human trafficking, domestic violence, and other violent crimes in the Municipality in comparison to other municipalities. May spoke to previous documentation circulated to the Board of Police Commissioners and referenced the Fredericton Police Board Budget. 

6.

Corporate Services Business Units

The following was before Budget Committee:

• Staff report dated February 13, 2025
• Correspondence from Downtown Dartmouth Business Improvement District, Downtown Halifax Business Improvement District, North End Halifax Business Improvement District, Porters Lake Business Improvement District, Quinpool Road Mainstreet Business Improvement District, Sackville Business Improvement District, Spring Garden Area Business Improvement District, Spryfield Business Improvement District and Village on Main Business Improvement District, Sara Napier, Ben MacLeod

Catie O'Toole, Chief Administrative Officer gave a presentation and responded to questions of clarification from Budget Committee. 

MOVED by Councillor Kent, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer to:

1. Incorporate the Chief Administrative Office proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

2. Incorporate the Finance & Asset Management proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

3. Incorporate the Human Resources proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

4. Incorporate the Information Technology proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget; and

5. Incorporate the Legal & Legislative Services proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget.

O'Toole, Britt Wilson, Chief Human Resource Officer responded to questions of clarification from Budget Committee.

MOVED by Councillor Morse, seconded by Councillor Austin 

THAT the Budget Committee amend the motion to include a new section that reads: "direct funding in the amount of $113,800 for a Senior Human Resources Business Partner for Halifax Transit HR service delivery, as outlined in the Briefing Note BN009 within the proposed 2025/26 Human Resources budget, be added as an option over budget on the budget adjustment list (BAL) for Budget Committee to consider in the 2025/26 Budget."

MOTION TO AMEND PUT AND PASSED. (13 in favour, 3 against) 

In favour: Budget Committee Chair Deagle Gammon, Deputy Mayor Mancini, Councillors Hendsbee, Kent, Austin, White, Hinch, Cleary, Morse, Cuttell, Steele, Hartling, St-Amand

Against: Councillors Gillis, Purdy, Young

Not present: Mayor Fillmore

O'Toole, Wilson, John Traves, K.C., CD, Municipal Solicitor/Chief Governance Officer, Jerry Blackwood, CFO, Executive Director of Finance & Asset Management responded to questions of clarification from Budget Committee.

The motion as amended now read: 

MOVED by Councillor Kent, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer to:

1. Incorporate the Chief Administrative Office proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

2. Incorporate the Finance & Asset Management proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

3. Incorporate the Human Resources proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget;

4. Incorporate the Information Technology proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget; 

5. Incorporate the Legal & Legislative Services proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget; and

6. Direct funding in the amount of $113,800 for a Senior Human Resources Business Partner for Halifax Transit HR service delivery, as outlined in the Briefing Note BN009 within the proposed 2025/26 Human Resources budget, be added as an option over budget on the budget adjustment list (BAL) for Budget Committee to consider in the 2025/26 Budget.

MOTION AS AMEDNED PUT AND PASSED UNANIMOUSLY. 

7.

Auditor General

The following was before Budget Committee:

• Report dated February 19, 2025

Andrew Atherton, Auditor General gave a presentation. 

MOVED by Deputy Mayor Mancini, seconded by Councillor Cuttell

THAT the Budget Committee direct the staff to incorporate the Auditor General's proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 19, 2025, into the Draft 2025/26 Operating Budget.

Atherton responded to questions of clarification from Budget Committee.

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillor Cleary

8.

Halifax Public Libraries

The following was before Budget Committee:

• Staff report dated February 13, 2025

Asa Kachan, Chief Librarian & CEO, Halifax Public Libraries gave a presentation

MOVED by Councillor White, seconded by Deputy Mayor Mancini

THAT the Budget Committee direct the Chief Administrative Officer to incorporate the Halifax Public Libraries proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 13, 2025, into the Draft 2025/26 Operating Budget.

Kachan, Mariead Barry, Director, Strategy, and Shannon McAllister, Manager, Finance, Halifax Public Libraries responded to questions of clarification from Budget Committee. 

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillor Cleary

9.

Fiscal Services - REVISED

The following was before Budget Committee:

• Staff report dated February 26, 2025, revised February 25, 2025

Tyler Higgins, Manager Budget & Reserves, Finance & Asset Management gave a presentation. 

MOVED by Councillor Austin, seconded by Deputy Mayor Mancini

THAT the Budget Committee direct the Chief Administrative Officer to incorporate the Fiscal Services proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 26, 2025, into the Draft 2025/26 Operating Budget.

Higgins, PJ Temple, Team Lead Grants Tax & Special Project, Jerry Blackwood, CFO, Executive Director of Finance & Asset Management, and Dave Harley, Director of Financial Management and Operations responded to questions of clarification from Budget Committee. 

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

a) One-time use of Central Library Reserve @ $10 million;

b) Increase Deed Transfer Tax estimate @ $3 million;

c) Reduce Climate Action Tax by one-third @ $6 million;

d) Eliminate all under-used land-lines @ $600 thousand;

e) Start charging insurance companies for HRM fire services responding to 100 series highway calls @ $250 thousand;

f) Reduce Tree Planting @ $1 million; and

g) others that the CAO may identify.

2. A comprehensive review of current vacancies and new FTE’s proposed in this budget to find cost savings.

for Budget Committee to consider in the 2025/26 Budget. 

Blackwood and John Traves, K.C., CD, Municipal Solicitor/Chief Governance Officer responded to a question of clarification from Budget Committee.

As provided for in section 90 of Administrative Order One, Respecting the Procedures of the Council, the motion was separated for voting purposes.

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

a) One-time use of Central Library Reserve @ $10 million;

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

b) Increase Deed Transfer Tax estimate @ $3 million;

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

c) Reduce Climate Action Tax by one-third @ $6 million;

MOTION PUT AND PASSED. (11 in favour, 4 against) 

In favour: Budget Committee Chair Deagle Gammon, Mayor Fillmore, Councillors Hendsbee, Kent, Hinch, Cuttell, Steele, Hartling, Young, Gillis, St-Amand

Against: Deputy Mayor Mancini, Councillors Austin, White, Morse

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

d) Eliminate all under-used land-lines @ $600 thousand;

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

e) Start charging insurance companies for HRM fire services responding to 100 series highway calls @ $250 thousand;

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

f) Reduce Tree Planting @ $1 million; and

MOTION PUT AND PASSED. (12 in favour, 3 against) 

In favour: Budget Committee Chair Deagle Gammon, Mayor Fillmore, Deputy Mayor Mancini, Councillors Hendsbee, Kent, Hinch, Cuttell, Steele, Hartling, Young, Gillis, St-Amand

Against: Councillors Austin, White, Morse

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

1. Examining, for example, the following measures:   

g) others that the CAO may identify.

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

MOVED by Mayor Fillmore, seconded by Councillor Purdy

THAT the Budget Committee direct the Chief Administrative Officer (CAO) to provide a briefing note for an under-budget adjustment on the Budget Adjustment List, with options for Budget Committee to keep the tax rate flat with minimal impact to core service delivery, by: 

2. A comprehensive review of current vacancies and new FTE’s proposed in this budget to find cost savings.

for Budget Committee to consider in the 2025/26 Budget. 

MOTION PUT AND PASSED UNANIMOUSLY. 

Not present: Councillors Purdy, Cleary

The vote was called on the main motion: 

MOVED by Councillor Austin, seconded by Deputy Mayor Mancini

THAT the Budget Committee direct the Chief Administrative Officer to incorporate the Fiscal Services proposed 2025/26 Budget and Business Plan, as set out and discussed in the accompanying plan and supporting presentation of the staff report dated February 26, 2025, into the Draft 2025/26 Operating Budget.

MOTION PUT AND PASSED. (14 in favour, 1 against) 

In favour: Budget Committee Chair Deagle Gammon, Mayor Fillmore, Deputy Mayor Mancini, Councillors Hendsbee, Kent, White, Hinch, Morse, Cuttell, Steele, Hartling, Young, Gillis, St-Amand

Against: Councillor Austin

Not present: Councillors Purdy, Cleary

10.

ADJOURNMENT

The meeting was adjourned at 4:15 p.m.