At the end of September, Halifax Water customers will know how much the utility is looking to hike residential bills, but the municipality’s mayor says what’s being discussed now is too much. The asks to the provincial regulator could be up to nine per cent in each of the next two years, though Halifax Water’s general manager says a duelling seven-to-eight per cent proposal could be more likely. “We are making every effort we can to keep the rates as low as we can, we continue to look through cost containment measures for efficiencies where we can to better improve the rates,” said Kenda MacKenzie, the utility’s general manager. She said increases are needed to cover operational needs, such as salaries, chemicals, fuel, electricity and aging infrastructure, while meeting federal standards. There’s a 13.8 per cent increase in expenses (which are projected to be $249 million) in 2027/28 and another 9.4 per cent bump in 2028/29, bringing total expenses to $273 million. $64 and $68 million of those figures, respectively, are for salaries and benefits. MacKenzie acknowledged, “that is a challenging conversation, and it does come up quite a bit.” “We want to make sure that the employees that we have are well-compensated for their time and making sure that we are an attractive employer of choice so that we can attract and retain high talent and good quality employees to make sure that we’re providing the service to our customers.” The utility’s accumulated deficit is projected at $23.8 million for the end of 2026/27. “The two years that are upcoming is too big of an increase for residents to swallow,” Halifax Mayor Andy Fillmore said. “With other recent increases, that could lead to a compounded 40 per cent increase in rates in just a few short years.” While the latest proposal has yet to be asked for, MacKenzie says it’s a balancing act between facing inflationary pressures as a utility, providing high-quality service and keeping rates as low as possible. “We’re going to look at the levers we have to keep them in line, more accountable,” Premier Tim Houston said on Thursday. “I’d like to see some of the members of the Halifax council step up on that, too.” Fillmore is awaiting a utility governance audit from Halifax’s auditor general. “Accountability of Halifax Water is diffused between the Halifax Water staff, the board… between municipal staff and the council, diffused between the provincial government and the regulator,” he said. The Halifax Regional Water Commission Act is provincial legislation. But MacKenzie said the structure is fine as is. “From a staff perspective, overseeing our operations, I am accountable for that,” she said. “I am accountable to our board and our board, ultimately, would be accountable in the municipal realm.” Fillmore argues the Halifax Water Board isn’t qualified when it comes to engineering, financing and legal support. MacKenzie also disagreed with that perspective. “I feel comfortable that our board has a strong composition that can bring the appropriate oversight to the challenges we are facing right now,” she said. Halifax Water is seeking an updated affordability study to support some customers. Both the mayor and the utility’s general manager agree Halifax Water needs other sources of money, not just from ratepayers. “We have to diversify the revenue,” Fillmore said. “That means leaving no stone unturned with other funding partners, including the provincial government, but more so the federal government.” From filing at the end of the month, the process could take six to nine months to get final increase numbers, MacKenzie said. New rates would take effect April 1, 2027, and 2028. MacKenzie said the utility will continue engagement, seeking feedback from the public and special interest groups. “We do appreciate that this is going to be an increased cost to them and it’s not lost on us,” she said. “It is trying times for everybody, trying to manage competing priorities.” For more Nova Scotia news, visit our dedicated provincial page
