Halifax Water is proposing a 650 per cent increase in water connection fees for new construction and an additional 265 per cent increase for connections to the wastewater system.
The utility has filed an appeal with the Nova Scotia Regulatory and Appeal Board, citing “increased infrastructure costs, faster-than-expected growth, (and) changing housing patterns,” among other reasons.”
But the president and CEO of the Nova Scotia Construction Association is concerned the potential increase will stunt growth in the city.
“The impact will be across the spectrum,” said Duncan Williams.
“This may be the thing that pushes us to a higher level in terms of the viability of some projects that otherwise might not have gone forward.”
This application is part of Halifax Water’s update to its regional development fees. The last increase in this fee occurred in 2019.
Halifax Water general manager Kenda MacKenzie said the utility needs additional funding to make repairs amid inflation, labor costs and growth in the city.
“Those are the main factors that lead to the increased costs of the infrastructure required,” MacKenzie said.
He said in the case of a new $600,000 home build, the estimated installation cost is 1.3 percent of the home’s cost. If Halifax Water’s proposal is approved, the new fee would be about 6.3 per cent.
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“We are asking that those costs be reinstated at the time of meter connection in an effort to try to make it more affordable for the development community,” he said.
But Mayor Andy Fillmore said he is also concerned about the impact of rising costs on Halifax’s continued growth and how it could impact people looking to buy or rent a home.
“What worries me is what will happen if this increase occurs. Will people still ask for permission? Will this have a negative impact on housing construction?” Fillmore said.
“I was worried that would happen.”
Williams said he was also concerned, but ultimately accepted that the increase was inevitable given interest rate freezes in recent years. He added that every decision taken now must consider the future.
“We’re experiencing significant population growth, we’re experiencing economic growth and there’s a lot more to come. So, how we plan, how we build, how we prepare for these things is really important,” he said.
The application requests that the new fees take effect on or after November 10.
The changes will not impact existing laws or be applied retroactively.
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