Halifax Water wants to substantially hike its fees for new developments to connect to water and wastewater systems, saying the move is needed to help keep up with the growing demand on local infrastructure.
Construction group says hike could impact rent, housing prices
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Haley Ryan · CBC News
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Halifax Water wants to substantially hike its fees for new developments to connect to water and wastewater systems, saying the move is needed to help keep up with the growing demand on local infrastructure.
Proposed changes to the regional development charge would see water fees for single homes and multi-unit developments increase by about 650 per cent, per unit. Wastewater fees would rise by 265 per cent, according to the application filed this week with the Nova Scotia Regulatory and Appeals Board.
“It is a huge shock to people, of course, when you see that,” said Duncan Williams, CEO of the Construction Association of Nova Scotia.
Williams said if the entire hike comes in at once, it would “definitely have an impact on construction and affordability.” Spreading the increase over a longer period of time could be helpful, he said.
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While Williams said the industry recognizes that upgrading aging infrastructure is key to accommodating growth, the development sector hopes federal investment for Halifax could offset some of the costs.
“There’s going to need to be some intervention and relief somewhere,” he said.
“To find a way forward where this doesn’t all get passed along to the end consumer, and ultimately slow or stall construction at a time when we need housing and infrastructure more than ever.”
Halifax Water’s application asks to raise the single-unit development charge for water to $14,417 from $1,921 per unit, and wastewater to $22,388 from $6,126.
For multi-unit dwellings, water would jump to $9,683 from $1,290 per unit, and wastewater to $15,037 from $4,115.
The proposed changes do not impact existing customer water or wastewater bills.
The application suggests collecting the fees at meter connection rather than at permit application. It’s a move Williams said the construction industry has been calling for, because having one less major bill to pay up front helps keep a project moving.
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The regional development charge was among the municipal fees frozen in 2023 by the provincial government, and extended again until November 2026 as a condition under Nova Scotia’s multimillion-dollar agreement through the Canada Housing Infrastructure Fund.
The municipal affairs minister has said the province does not plan to extend the freeze again.
Kenda MacKenzie, general manager of Halifax Water, said while the freeze meant the development charge could not rise with inflation each year as it usually does, it is not “the most significant driver” in the increase.
Utility facing challenges
The last major update was in 2019, and MacKenzie said an unexpected population boom, the COVID-19 pandemic, and a major jump in the costs of fuel, materials and labour are all factors in the utility’s application for an increase.
“We are facing the same challenges and pressures that everybody is across our city, across our country,” MacKenzie said.
The utility is open to spreading the hike over a period of time, MacKenzie said, and Halifax Water has recently made three applications to the federal Build Communities Strong Fund to help with infrastructure projects.
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The utility is also examining whether some of the $28 million in federal money it received for upgrades around the Windsor Street exchange could help “offset some of these costs” in the regional development charge, MacKenzie said.
Mayor Andy Fillmore said he is hopeful advocacy from the Federation of Canadian Municipalities will help the federal government recognize that investment is especially needed in cities like Halifax that are being tapped for major military projects.
Fillmore said he is also talking with Vice-Admiral Angus Topshee, vice-chief of the defence staff, to establish a defence table in Halifax where municipal, provincial, and defence officials could plan major infrastructure needs together to avoid “surprises or pitfalls.”
Exploring options for infrastructure
The mayor said Halifax should also explore more public-private partnerships to build major pieces like wastewater plants.
“We have to grow. There’s no question,” Fillmore said. “But … we have to figure out how to do it in a way that doesn’t make Halifax even less affordable to live than it has become.”
The application suggests the new fees take effect on or after Nov. 10.
Given the Nova Scotia Regulatory and Appeals Board process often takes six to nine months to complete, MacKenzie said any hike would most likely take effect this winter or later. She said the utility would not enforce the charge retroactively.
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ABOUT THE AUTHOR
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Haley Ryan is the municipal affairs reporter for CBC covering mainland Nova Scotia. Got a story idea? Send an email to haley.ryan@cbc.ca, or reach out on Twitter @hkryan17.
