I want to unpack this a bit - Both @nsfedmuni & @FCM_online as well as @hfxgov staff, Mayor, myself have been working since March to obtain Fed and Provincial funding & support /1
HRM councillor calls on province to provide more support amid COVID-19 cbc.ca/news/canada/no…
HRM councillor calls on province to provide more support amid COVID-19 cbc.ca/news/canada/no…
What are the COVID issues? Slow payment especially of commercial tax this year creates a *cash flow* challenge, increased non-payment means some may not be recovered until a tax sale (3-4 years from now). /2
Further, much commercial assessment is based on "net operating income" meaning that the property tax impact of SME and other business failures will translate into less rent, and then commercial tax collected down the road, creating a *revenue* challenge in coming years. /3
But there is also a *revenue* challenge right now, due to parking, rec fees not able to be collected, and running transit with no fares. $4-6 million a month lost for HRM. So what do municipalities need that we are not getting? /4
So far the province has given us a line of credit for *cash flow* Three years term tho, which is too fast. Need 5-7 years. We are struggling to budget a $31 m charge from *revenue* to help pay back the first payment of the LOC as we will not have gotten taxes in to pay (yet) /5
When @bill_karsten says the province has not done enough this is one of the big pieces - there has been no operational support for municipalities - not one penny, nor can we even borrow money and operate in a deficit. /6
In Nova Scotia, municipalities have restrictive, crappy old legislation that we have been trying to get changed for a decade. The Department of Municipal Obstruction and the government of NS never saw it as a priority for reasons, and now in this crisis we are hog-tied by it /7
Munis cannot budget operating deficits so when *revenue* drops, the munis have to cut operating or raise taxes. Munis cannot do targeted tax relief, so providing deep tax deferrals for hotels and restaurants is not possible without provincial action to change the law. /8
Municipalities across Canada are asking the Feds for cash - grants - moolah - Benjamins (Bordens?). The Feds are rightly asking "where are your provinces?" This is a huge part of it. Provinces need to be at the table, and yes Premier, we need your 1/3, bring your chequebook. /9
The Feds are also saying "we signed these bilateral agreements on Green, Housing and Transit with NS 2-3 years ago, and your Provinces are still stalling." There is 800 million potential for HRM in Transit and Green alone. /10
The province has been resisting this, as most transit $$ goes to HRM based on ridership. These are 10 year deals, and we have wasted 3 years with the province stalling. Ottawa wants a transit revolution, and the Province is focused solely on twinning highways. /11
So in addition to "new money for COVID" something the Feds want to see, and HRM wants to see, is the province meet its commitment (you signed the bilateral) and start flowing PTIF2 money and green money right away, to fund things like fast ferry and BRT. /12
So to @StephenMcNeil - Munis have been asking for the ability to run deficits, target tax relief, provincial participation in gas tax/other COVID measures, and for an immediate open of the Transit/Green bilaterals for applications. And the answer so far is NO. /13
It is true that Minister Porter (who I have a lot of respect for) has been meeting with NSFM since March but meetings and a buck fifty get you a coffee. Thank you for the LOC, but we need a longer-term, and we need those other issues addressed in days and weeks, not months. /14
