Operating Book - Halifax Regional Municipality

HRM 2010/2011
Proposed Budget
On the revenue side, HRM depends on taxation, grants and user charges to support its services
and programs. Each of these sources have limited room for expansion. Ten years ago, HRM was
facing a heavy debt burden with large debt servicing payments. With the introduction of the
Multi-Year Financial Strategy in 1998, HRM has been steadily paying down this debt and limiting
new debt issued. This has reduced the annual debt servicing payments required, freeing up more
of HRM=s revenue for other purposes.
Under Nova Scotia provincial legislation, municipalities may not budget for a deficit. Therefore,
any increase in spending levels is fully dependent on either raising additional revenue or
reallocating resources (funding new initiatives with the money saved by reducing or eliminating
existing programs). This is something that is looked at each year within business units as they
work with given levels of funding to provide the most important services in support of municipal
objectives.
Finding new sources of funding, using these funds in the best possible manner, and re-allocating
resources to reflect shifting priorities will require decisions to be made. HRM faces difficult
choices but will be assisted in these decisions by the planning and strategies put in place over the
past few years, including but not limited to, the Regional Plan, the Economic Strategy and
Council Focus Areas.
Other Challenges Ahead
HRM, as an organization, is facing several challenges and changes in the coming years, which
include:
$ a recovering economic situation;
$ hosting the 2011 Canada Winter Games;
$ the pending retirement of a significant number of senior HRM staff and difficulty in
recruitment and retention of new employees; and
$ changes in technological tools needed to deliver municipal services (i.e. implementation of
the new Revenue Tool, continued optimization of HANSEN, SAP and other existing
tools) and planning for future technological needs.
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