Municipalities across the province are facing a significant financial shortfall in the wake of COVID-19.
A report from the Nova Scotia Federation of Municipalities identifies a total potential deficit of $66.5 million.
A loss of several types of fees, and extra PPE costs are just some of the culprits cited for the shortfall.
Nova Scotia Federation of Municipalities President Pam Mood explains that budgets are based on the previous year’s projections, and although they do receive tax revenues – nobody could have predicted the impact of COVID-19.
“Things like losing revenue on transit, and rec, and deed transfer taxes,” she elaborated. “All those pieces that are not recoverable. A municipality cannot get those back.”
Mood says at this point, they’re eager to learn details of a federal transfer program announced a couple of weeks ago that has funds earmarked for municipalities.
“That 14 billion dollars that the Prime Minister announced and it’s up to us together with the province to go after that funding to make sure that Nova Scotia, of course, gets our portion of that money,” she explained. “The other piece is to figure out, you know, how do you dole those funds out.”
She notes that when it is decided how the funding will be doled out, municipalities will receive their portion based on needs.
Mood says that without financial aid, trying to make up the nearly 66 million dollar deficit would translate to an average 7.1 percent residential tax hike – though stresses this is only a comparison to clarify the financial picture.
The $66.5 million financial figure is based on survey responses from 47 of 49 municipalities, which accounts for representation of 99% of the province’s population.
