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Halifax’s looming money problems take shape

Mayor Savage says bad decisions around development are really coming back to bite the city this year.

The Audit & Finance Standing Committee met Wednesday, Nov. 15, to get an update on Halifax’s financial performance in the second quarter of this fiscal year. And there was some good news, as the city’s investments did okay in Q2. The city made $9.6 million from its portfolio during April, May and June 2023, including “operating fund investment income” of just over $4.2 million, about $700,000 more than the expected $3.5 million. Staff expect this trend to continue as long as interest rates remain high.

That said, as of Sep. 30 the HRM’s business units are running a projected deficit of just under $8 million, with most of the business units running at a loss in Q2. One of the only business units that’s helping to offset the massive drop in the deed transfer tax (an estimated $10 million) is transportation and public works, which managed to claw back over $600,000 of municipal driving subsidies through parking fees. …[Continue Reading]