Proposed 650% Halifax Water fee hike for new construction raises alarm among builders

Halifax Water is proposing a 650 per cent increase to water hook-up fees for new developments and an additional 265 per cent hike to connect to the wastewater system.

The utility has applied to the Nova Scotia Regulatory and Appeals Board, citing in part “increased infrastructure costs, faster-than-expected growth, (and) changes in housing patterns.”

But the president and CEO of the Construction Association of Nova Scotia worries these potential hikes will hamper growth in the municipality.

“It’s across the spectrum that there’s going to be an impact,” said Duncan Williams.

“This may be the thing that pushes us over the top in terms of the feasibility for some of the projects that may not just go ahead.”

The application is part of Halifax Water’s update to its regional development charges. The last increase to these charges was in 2019.

Halifax Water’s general manager, Kenda MacKenzie, says the utility needs the boost in funds for upgrades amid inflation, labour costs and growth in the municipality.

“Those are the predominant factors that are going into the increase of the cost of the infrastructure needed,” said MacKenzie.

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She says in the case of a $600,000 new house construction, the approximate hook-up fee would be 1.3 per cent of the cost of that home. If Halifax Water’s proposal is approved, the new fees would be about 6.3 per cent.

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“We’re asking to have the charge recovered at the time of meter connection in an attempt to try and make it a bit more affordable for the development community,” she said.

But Mayor Andy Fillmore says he’s also concerned about what the increased cost will mean for continued growth in Halifax and how it could impact people looking to buy or rent homes.

“What worries me is what happens when the increases do come. Will people still be seeking permits? Will this have a dampening impact on home building?” said Fillmore.

“I fear that it will.”

Williams says he’s worried too, but ultimately accepts this hike was inevitable given the rate freezes in recent years. He adds that any decisions made now must have an eye on the future.

“We’ve had significant population growth, we’ve had economic growth with lots more to come. So how we plan, how we build, how we prepare for these things is critical,” he said.

The application asks for the new fees to take effect on or after Nov. 10.

The changes would not impact existing bills or be enforced retroactively.

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