Region of Queens Deputy Mayor Maddie Charlton and Mayor Scott Christian at Tuesday’s regular council meeting. (Region of Queens YouTube channel)

The Region of Queens is sitting on a $1.385-million surplus from last year, but Mayor Scott Christian says the news isn’t as great as it may sound.

“I think a lot of the surplus is on the back of major capital projects that were intended, not getting complete,” he told QCCR.

“So I certainly applaud our finance department and their approach in managing our organization’s finances. But we have this challenge where we’re budgeting money for projects that are really important for the community and we’re just not delivering in a timely way. We need to take a hard look at that and make sure that we are spending the money in the budget that’s going to lead to important projects and progress for residents and for visitors in Queens County.”

The region’s finance director Joanne Veinotte presented the audited financial statements for 2024/25 at Tuesday evening’s council meeting.

She said the region ended the fiscal year with a surplus of $1,385,705, helped along by higher-than-expected tax revenue and returns on the region’s investments. Expenses were lower because of unfilled positions and capital projects not yet finished.

Veinotte also said the Region of Queens Water Utility recorded a lower-than-expected deficit – some 42 per cent less than budgeted, for a saving of almost $185,000.

Even with a higher-than-expected budget surplus and a lower water utility deficit, Christian said he’s not sure how that will affect the region’s upcoming water rate hearing.

“The numbers that are driving the proposed increase to the water rate are modeling sort of well into the future,” he said.  

“I can’t answer if there is good reason to go back and challenge any of the assumptions that were used in generating those projected operating expenditures on the water utility. I’m not sure yet.”

The municipality has requested a 106 per cent increase for most of the 1,200 customers in Liverpool and Brooklyn who are on the municipal water supply.

Nova Scotia Regulatory and Appeals Board hearings are scheduled for Wed., Nov. 19 at 10:30 a.m. in council chambers at the region’s office.

The region hired consultants G.A. Isenor and Blaine Rooney to prepare its water rate study as part of its application to the regulatory board.

In documents filed on the board’s website, the regulator has asked the region for more information or clarification on 55 various points. 

Some are about whether the region knows if people will be able to afford the expected $348-a-year increase for most residential customers.

It also asked the region to submit a revised rate study lowering the financial impact on customers and spreading it out over three years instead of imposing most of the increase in the first year.

So far, there is one registered intervenor in the rate hearing. The Queens Community Health Board is concerned how the increased water expenses will affect the broader health and well-being of residents.

Christian said the proposed increases are important to put the water utility back on sound financial footing.

“We want to get our costs in order and run the water utility in a solvent way that’s aligned to our obligations as a water utility operator, and so the sooner that we can get our costs in order the better.”

Even so, Veinotte told councillors on Tuesday evening that by the time the hearing happens and the regulator makes its decision, any rate increases likely won’t take effect until 2026.

To look at all the documents filed so far as part of the region’s water rate application, use this link and enter M12363 in the field.

Email: rickconradqccr@gmail.com

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Fire trucks at North Queens Fire Association headquarters. (Facebook)

Region of Queens councillors and staff have found a way to help the county’s fire departments with the increased costs of buying new equipment — and all without raising the tax rate.

Councillors are currently in budget deliberations, so the final budget has not been approved. But they headed off a request for an increase to the tax rate to help fire departments pay for new trucks.

Fire chiefs and the region agreed to a new funding schedule in February to replace fire and rescue trucks. The region increased its contribution to $425,000 for pumpers, tankers and aerial trucks from $275,000. That kicks in for the 2026/27 fiscal year.

But as councillors heard on Tuesday, new trucks keep getting more expensive. And higher interest rates mean that borrowing costs for fire departments have skyrocketed.

Fire chiefs made a presentation to council on Tuesday asking for an increase of one cent to the region’s overall tax rate. 

The residential property tax rate per $100 of assessment in districts 1 to 12 is at $1.07 and $1.92 in District 13.

Chris Wolfe, chief of the North Queens Fire Association, told council that interest rates for fire departments have risen to 8.2 per cent from 3.45 per cent in 2021. On a 10-year loan of $600,000, fire departments would have to pay $170,000 more over that period than they would have in 2021.

“Basically the $275,000 that we get now for truck replacement would be just gobbled up in interest charges and wouldn’t be going to the actual principal of buying the truck,” he said.

“The interest for that 10-year term is what’s making a big difference for us in the Queens County fire services in purchasing trucks. It’s taken a drastic jump over the last three or four years.”

Wolfe said the cost of trucks has also risen in the past three years. He said a truck builder in Lantz reported that the cost of a custom fire chassis has jumped by about $120,000 since May 2022. The truck builder told Wolfe that his overall supply costs have also gone up by three per cent. 

Three trucks are due to be replaced over the next two fiscal years, but at the region’s lower contribution of $275,000.

Wolfe said that a one-cent increase in the tax rate now would help the fire departments cope with the increased costs.

Councillors appeared to be prepared to grant the chiefs’ request.

CAO Cody Joudry, however, suggested that staff might be able to find another way to grant the chiefs’ request without adding to the tax rate. 

After a break, Joanne Veinotte, director of corporate services, said that councillors could do what they did last year to help maintain the tax rate.

During last year’s discussions, they budgeted $442,000 from the accumulated surplus to prevent a tax rate increase. Councillors are also eyeing an estimated $650,000 surplus from 2023/24. 

Veinotte said the region didn’t actually need any of that $442,000 because they saved money on staffing and delayed capital projects. She suggested they could do the same thing this year, by pulling $126,772 from reserve funds for fire services to balance the tax rate.

“The fire department has their increase of a penny but yet you still have your no increase in tax rate. And that is something I can literally do in two minutes. So if that’s what council feels comfortable with to get this budget done and put to bed, then I can certainly do that.”

Joudry clarified that if they record a surplus in 2024/25, then the region likely wouldn’t have to dip into the accumulated surplus to pay for the fire departments’ increased truck costs.

Councillors will get the final draft of the budget on Thursday. They hope to approve it at their council meeting on Tues., April 23 at 6 p.m.

Email: rickconradqccr@gmail.com

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Region of Queens administration building. Photo Ed Halverson

The Region of Queens is attributing a $1,669,497 budget surplus to unexpected income from investments, taxes on home sales and unfilled staff positions.

At the September 12 meeting, council received the Region’s audited financial statement for fiscal 2022/23.

Mayor Darlene Norman says municipal staff worked hard to ensure a balanced budget and the excess is not a result of poor planning.

The Region took in $505,560 more in deed transfer taxes than expected. The deed transfer tax is a 1.5 percent tax charged by the municipality on the sale of every property in Queens.

Investments also paid off for the Region as they saw an extra $139,000 more than expected due to the Bank of Canada continually increasing their prime rate.

The audit report shows the number of municipal employee positions going unfilled is hurting the Region’s ability to complete some projects.

Transportation wages were under budget by $52,417 because of an employee shortage. Another $112,863 remained in municipal coffers because of vacancies at the regional recycling facility. The inability to fill the building inspector position resulted in another $24,000 in unpaid wages. Staffing shortages in planning and law enforcement left $86,000 and $36,000, respectively, unspent. As well, repairs to the Astor Theatre did not go ahead do to staffing issues and the Milton and North Queens pools were under budget due to staffing shortages.

Mayor Norman says other municipalities and private sector operators are having difficulty recruiting and keeping employees and the Region of Queens is no different.

Available job openings are routinely posted, and the Region is actively pursuing people to assume some positions, most notably a Chief Administrative Officer. The position is the top employee in the municipality and has been vacant since former CAO Chris McNeill resigned in May.

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E-mail: edhalversonnews@gmail.com

Region of Queens Administration Building. Photo Ed Halverson

Region of Queens Council was back with a jam-packed agenda in the first meeting after summer.

Council meets just once a month during July and August and have now returned to their regular twice monthly schedule.

Council heard from the public to start the meeting. A question was raised whether water utility customers would receive a refund from the municipality considering they haven’t had drinkable water in over a month since the treatment station was struck by lightning.

Mayor Darlene Norman says the Region of Queens won’t be providing a refund as the utility is its own legal entity and rates are set by the Nova Scotia Utility and Review Board.

Next council awarded the South Shore Multicultural Association $3,000 from the Community Investment Fund to assist with National Day of Truth and Reconciliation events being held at the Hank Snow Museum at the end of the month.

Council then heard from finance staff who reported the municipality had a $1.6 million operating surplus last year. Mayor Norman says the surplus can be attributed to a number of factors including: $1.2 million in unexpected income from deed transfer tax and investment returns, as well as $400,000 that went unspent on staff positions the Region has been unable to fill.

Two contracts were then awarded following request for proposals involving an evaluation of the Region’s Information Technology systems as well as a staff and council compensation review.

Mayor Norman says it’s been many years since either was properly assessed and the municipality needs to know which IT systems work and why.

The compensation review will be undertaken to determine if staff and council pay are in line with what other municipalities and the private sector are offering.

Council went on to discuss Queens County Rails to Trails and the Queens County ATV Associations’ request to redesignate the trail corridor from West Street, behind the municipal offices building to Silver Rock Road to multi-use. Currently that trail only permits pedestrians, and the organizations would like it opened for off-highway vehicles and bicycles.

The Nova Scotia Federation of Municipalities will be hosting their fall convention and Region of Queens decided to send five members of council.

Finally, the Region will be applying for intervenor status at an upcoming hearing at the Nova Scotia Aquaculture Board regarding a site expansion at the salmon farm in Liverpool Bay.

The next council meeting will be held September 26 in council chambers beginning at 6:00pm.

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Photo Ed Halverson

The Region of Queens is projecting a $3.4 million surplus in this year’s budget and knows how to spend it.

While some of the money will be put into reserves, council agreed the bulk of the windfall will be used to build a new library.

Mayor Darlene Norman says it’s an excellent way to build out a resource that is needed by the community without putting undue burden on the residents.

“No long-term borrowing, no need for debentures, this build will not show up on any future operational budgets of the Region’s,” said Norman.

The process of finding a location, picking a design, and getting feedback from library officials will begin almost immediately after the budget is passed in the hopes a new library can be opened next year.

Almost $2 million of the surplus comes from federal and provincial sources, an increase in deed transfer tax accounted for another million, $320,000 came from a pension fund surplus and roughly $200,000 is a result of work that needed to be deferred due to the pandemic.

Residents can also look forward to paying less in commercial and residential property tax.

Norman says assessments in Queens County have risen, on average by five percent in the last year.

Staff initially recommended lowering the rate by four cents per $100 of assessment.

Because of the recent and rapid rise in oil prices, they suggested a more cautious reduction of two and a half cents per $100.

Norman says council reviewed the low-income tax rate rebate program to better support those who are most vulnerable.

“Currently the Region of Queens maximum allowable amount of income going in that home would be $25,000,” said Norman. “We’ve increased that to $30,000 and the rebate of $250 has been increased to $300.”

Several capital projects are identified in this year’s draft budget including upgrades to the sewage treatment plant in Caledonia, rebuilding the compactor at the solid waste facility, investments in I.T. and expanded broadband coverage across the region.

Norman says some needed sewer line upgrades in Liverpool will mean borrowing $600,000.

“We have infrastructure in Liverpool that’s 100 – 135 years old that infrastructure or public works department will continue to upgrade,” said Norman. “That infrastructure and that funding is not on our operational [budget]. It’s on those who are on the sewer system, those who are on the water system and some of the gas tax money. It’s user-pay.”

The full budget will be brought before council Tuesday March 22 at 6:00pm in council chambers.

E-mail: edhalversonnews@gmail.com
Twitter: @edwardhalverson

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