Rate hikes loom as Queens water utility expenses balloon

A brick building with Region of Queens Municipality administration building on the outside.

Region of Queens Municipality administration building. (Rick Conrad photo)

By Rick Conrad

Residents in Liverpool and parts of Brooklyn should brace for water rate hikes but not right away, Mayor Darlene Norman said Tuesday.

 “Please be prepared for a water utility rate study and a very probable increase in water utility rates,” Norman said in an interview.

Regional council got a better picture on Tuesday of the budget impact of the boil water advisory for Queens water utility customers from Aug. 9 to Oct. 5 last year.

The municipality had already budgeted last spring for a loss of $173,700 for the water utility. The treatment station was struck by lightning on Aug. 9. Residents on the municipal water supply were under a boil water order for eight weeks.

Joanne Veinotte, director of corporate services for the Region of Queens, gave councillors a third-quarter financial review on Tuesday. As of Dec. 31, the water utility has run an extra $252,655 over budget, or $426,355 so far. 

Norman said Queens water customers pay some of the lowest rates in the province. The utility must pay for itself and not run a deficit.

Before any rate increase, however, the utility has to prepare a rate study. The Nova Scotia Utility and Review Board would have to approve any fee hike. 

Norman said she has no timeline for when that review may be done. She said council does not have the money in its current budget for the rate study. 

“The system is old, early 1900s. So it constantly needs repair and upgrading.

“It may well be the next council coming in in October that will be looking at the results of that study.”

Veinotte told councillors Tuesday that the region will be reimbursed for $82,000 from its insurance provider for the damage caused by the August lightning strike. 

“At the end of the day that claim is now finalized but we’re still dealing with some of the fallout from the lightning strike,” Veinotte told councillors.

In other positive financial news for the region, revenue from the 2.5 per cent deed transfer tax was again over budget for the third quarter.

Veinotte said the region brought in about $220,000 more than expected from the tax in the quarter and the region is expected to exceed its projection for the deed transfer tax by about 58 per cent for the whole fiscal year.

The region also got a higher-than-expected share of the Nova Scotia Power tax payout from the province of about $132,000.

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Staff vacancies contribute to Queens’ $1.6 million budget surplus

Exterior of Region of Queens Administration building

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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Council approves rezoning for co-op housing at latest meeting

A long, brick building

Region of Queens Administration Building. Photo Ed Halverson

Rezoning of an area to accommodate to construction of co-op housing topped the latest meeting of Region of Queens council.

No one spoke in favour or against the proposed multi-unit co-op development at a public hearing ahead of Tuesday’s council meeting.

Council approved the rezoning to allow the construction in the Lawrence Street/Amherst Street part of Liverpool.

Also receiving council approval was a request from the Medway Head Lighthouse Society to allow liquor to be served at the opening night of their annual art show.

Council then approved the $314,700 + HST purchase of a front-end loader for the Queens solid waste facility. The purchase came in over $70,000 less than the budgeted amount of $385,000 + HST.

Next up was the appointment of Miles Harlow as Fire Inspector for the municipality. Harlow is a building inspector for the Region and will continue in that role as he takes on the responsibilities of fire inspector alongside the municipality’s current sole fire inspector Tim Clattenburg.

In the discussion portion of the meeting, a question was asked during the Council Implementation Report as to what progress is being made to sell off some the Region’s surplus properties.

Planning staff had been tasked with developing a policy for the equitable sale of surplus lands but say there hasn’t been time. They are processing a high number of permits which need to take priority over the policy development.

Next council tasked staff with cleaning up graffiti on municipally owned property in Port Mouton.

The first quarter financial review continues to show high deed transfer tax payments. The deed-transfer tax puts 1.5 percent from the sale of any property in Queens into municipal coffers. Staff had predicted $720,000 in tax revenue for the entire year but has taken in $321,905 in just the first three months of the year, almost half of what they were expecting for all of 2023/24.

Finally, council is looking at installing security cameras in the recreation areas at Queens Place after vandals have been leaving broken glass and graffiti throughout the campus. Staff will explore options and bring a report back to council at the next meeting that will outline possible solutions and costs.

The next council meeting will be held in council chambers on September 12 beginning at 9:00am.

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Government making changes to new non-resident property tax

A man sits at a desk in front of a row of Nova Scotia flags

Premier Tim Houston. Photo Communications Nova Scotia

Changes are coming this spring to the new non-resident property tax.

The two percent tax on any property owned by people who don’t call Nova Scotia their full-time home was introduced by the provincial government as part of the budget during the spring sitting of the legislature.

At the time, Premier Tim Houston said the tax will be used to address the housing crisis in Nova Scotia.

In a release detailing the proposed changes Houston says, “We love our seasonal residents, and we will continue to show them our Nova Scotian hospitality and welcome them with open arms, but my main concern is for the people who are or want to live here year-round but can’t afford a place to live,” said Premier Houston. “We are positioned to grow in every region, but we need housing. This is one way our government is addressing the housing crisis and these changes respond to concerns we have heard from Nova Scotians.”

Opposition MLAs have voiced concerns the money raised from the tax will be going into the province’s general revenues and not into a dedicated envelope directed at increasing housing availability.

In response, government says they intend to spend more to address the housing crisis than will be received in revenue from the non-resident property tax.

Critics says the tax unfairly targets people with family cottages and members of the military.

Under the changes being introduced this spring, active Canadian Armed Forces personnel will be exempt from paying the non-resident property tax and rates for other non-residents will range based on the assessed value of their property.

The first $150,000 of the assessment will be exempt, 0.5 percent will be charged on properties valued between $150,000 and $250,000 and those over $250,000 will be taxed the full two percent.

All vacant residential land owned by non-residents will be taxed at two per cent regardless of the assessed value.

And any property sold to a non-resident will be charged the five percent deed transfer tax, which was also introduced this spring.

Premier Tim Houston announced the changes May 3, during the State of the Province address.

The province says the changes will help military families and provide relief for owners of small cottages while clarifying the tax for vacant residential land owned by non-residents.

Reported by Ed Halverson 
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Local realtor says non-resident tax will alienate community, not solve housing crunch

A sign indicates a property is sold

COVID-19 has spurred home sales in Queens. Photo: Ed Halverson

New taxes targeting non-resident homeowners won’t address the affordable housing issue according to a local realtor.

Measures announced in last week’s provincial budget will impose a five percent deed transfer tax on the sale price of a home and a provincial tax of $2 per $100 of a home’s assessed value for anyone from outside the province purchasing a house in Nova Scotia.

Kristopher Snarby, managing associate broker with Exit Interlake Realty says everyone knows a lack of available housing has caused prices in the purchase and rental markets to soar but taxing buyers from outside the province won’t solve the issue.

“These new rules are only applying to people who don’t live here full time,” said Snarby. “For example, for me in the past year, I’ve dealt with a lot of Ontario buyers and Western Canadian buyers but they’re all moving here full time so nothing’s going to change on that front.”

Kristopher Snarby, managing associate broker EXIT Interlake
Realty in Liverpool/Bridgewater. Photo submitted by Kristopher Snarby

Another issue Snarby sees is the homes that would be subject to the tax aren’t generally in the price range for first-time homebuyers.

“It’s not the bread and butter. It’s not the $100,000 homes or the $200,000 homes. Probably a lot of them are oceanfront, lakefront, really high-end homes that are in the half million to a million-dollar range, and in Halifax even more, maybe. So, that’s the other part of the puzzle is that it’s not really the houses that the general public can afford.”

Snarby says many of the non-resident homeowners have come to the area year after year, supporting local businesses and services and have become part of the fabric of the community.

“My fear is we’re upsetting a lot of people who have contributed a lot to the province over the years and kind of slamming the door in their face saying, hey, you’re not welcome here anymore,” said Snarby.

Province says measuring effect of taxes will take years

Finance Minister Allan MacMaster says taxing non-residents will make more housing available in Nova Scotia because it attacks the problem on a couple of fronts.

First, the tax will raise money that government can put into affordable housing and second, it should cool demand for houses from buyers outside the province.

“It’s an inexact science. I will not come on and make claims that this will solve everything, these taxes will solve everything. But we do believe that they will have some impact and over the next two years we’ll be building a database,” said MacMaster. “We’ll know just how much we’ll be raising in terms of revenue, and we’ll know just how much of an impact these taxes will have on the housing market and whether or not they do, in fact, increase supply for Nova Scotians.”

Despite announcing the taxes to tackle the housing crisis, MacMaster says money collected won’t be set aside, instead, it will go into the provincial government’s general revenue.

“We haven’t collected a cent of these taxes to date, but we’ve already spent money last fall. We ear-marked $35 million for affordable housing, we added another $15 million in the budget that was introduced a week or so ago,” said MacMaster. “We’re taking in money and there’s money going out the door all the time and practically speaking, sometimes it’s difficult to just say, okay, we’re going to use these funds for a certain purpose.”

MacMaster says government will continue to look for ways to help Nova Scotians into homes but is definite on one thing.

“We need more housing. Whether it’s government purchased and managed housing, whether it’s co-operative housing or whether it’s private sector.”

MacMaster acknowledges building up the housing stock will take time and in the interim, government will make more rent supplements available to get people into rental units that may be outside their budget.

The new tax measures went into effect April 1.

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Projected $3 million surplus highlights proposed municipal budget

Road sign showing two people in a canoe with the words Queens Coast

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.

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