Nova Scotia Federation of Municipalities

WHEREAS the CAP program distorts the property tax system; and

WHEREAS it is not clear the homeowners most in need of property tax relief are the ones benefitting from the CAP program; and

WHEREAS municipalities are willing to offer pilot programs that will continue to meet the original objectives of the CAP program though a different approach; and

WHEREAS pilot programs can be evaluated to determine intended and unintended impacts of changes; and

WHEREAS a study on Municipal Property Taxation in Nova Scotia, by academic experts Harry Kitchen and Enid Slack recommended a phase-out of the CAP program;

THEREFORE BE IT RESOLVED the Province work with municipalities and other stakeholders to phase out the CAP program and provide better alternatives to protect low-income homeowners and those experiencing significant increases in residential property assessments; and

FURTHER BE IT RESOLVED that the Province enable pilot projects to be undertaken as soon as possible.

View the full text of the resolution

Further Information and Current Progress:

On January 29, 2020, NSFM's proposal to phase out the CAP was introduced to an All-Party Committee . The committee, chaired by NSFM President Pam Mood, includes Keith Irving (Liberal MLA), Tim Houston (Conservative Leader) and Gary Burrill (NDP Leader), along with Department of Municipal Affairs critics Elizabeth Smith-McCrossin (Conservative) and Lisa Roberts (NDP).

In December, 2020, NSFM launched the CAP Map Interactive Tool, designed to help familiarize ratepayers with the effects of the CAP on tax rates. It also features an in-depth analysis of the CAP by MountainMath Software and Analytics, the developers of the tool. 

Since the release of the CAP Map tool, attempts to reconvene the Committee have stalled, despite pressure from NSFM to continue movement on the issue. 

NSFM has recently used 2022 assessment roll data to determine the impact of CAP on the assessment and revenue base for each municipality. This analysis helps to demonstrate how CAP inflates property tax rates and limits access to one of the few sources of revenue for municipalities.

For further reading on the Capped Assessment Program, please visit the CAP Archive

WHEREAS the Province of Nova Scotia and NSFM recognize common goals relating to municipal sustainability to make municipal operations more efficient and increase climate resilience; and

WHEREAS the Province of Nova Scotia and NSFM are supportive of wise investments in infrastructure to support sustainable service delivery at the right level and cost to taxpayers; and

WHEREAS the Province of Nova Scotia and NSFM recognize the importance of regional cooperation since the impacts of climate change do not recognize boundaries and enhanced collaboration will support municipalities in making their communities healthier, safer, and more prosperous; and

WHEREAS municipalities have direct or indirect influence over close to 50 percent of the nation’s greenhouse gas emissions and are responsible for more than half of Canada’s public infrastructure; and

WHEREAS NSFM recognizes that some municipalities lack the resources to access existing funding opportunities that would allow them to develop innovative and strategic initiatives to make their operations and infrastructure more sustainable; andp>

WHEREAS NSFM recognizes that some municipalities lack the resources to access existing funding opportunities that would allow them to develop innovative and strategic initiatives to make their operations and infrastructure more sustainable; and

THEREFORE BE IT RESOLVED that the Province cost share the funding for a Sustainability & Infrastructure Funding Support position within NSFM.

View the Full Resolution for Sustainability and Infrastructure Funding Support Resolution

Further Information and Current Progress:

There are a range of financial resources and programs available to help municipalities pursue sustainable infrastructure development. Nevertheless, many municipalities lack the capacity to seize these opportunities to their fullest. NSFM is well positioned to function as a coordinator for municipalities but also has current capacity limitations.

The NSFM will be calling for financial support from the Province to create a Sustainability and Infrastructure Funding Support Coordinator to increase in-house capacity to assist municipalities in accessing available sources of funding.

In order to maintain momentum of establishing Extended Producer Responsibility (EPR) for Printed Paper and Packaging (PPP) in Nova Scotia, members voted at the 2022 AGM to include a focus on EPR in the Sustainability and Infrastructure Funding Support Resolution. Therefore, NSFM’s call for financial support from the Province to create a Sustainability and Infrastructure Funding Support Coordinator, will be combined with a call for EPR regulations to be established and implemented.

Both of these advocacy priorities call for resourceful and expanded use of funding to assist municipalities in accomplishing goals of sustainable operations and infrastructure development. EPR will help alleviate municipalities of some of the costs and risks associated with curbside recycling programs. The Sustainability and Infrastructure Funding Support Coordinator position could also provide information to municipalities on EPR and conduct evaluations on how it is working in the interest of municipalities.

WHEREAS Towns are responsible for the cost of maintenance and capital improvements with respect to all roads within their municipal boundaries, including roads of joint benefit to the Province and towns, such as arterial and collector roads, for which the Province does not share costs; and

WHEREAS Rural municipalities make financial contributions to the Province for the maintenance of J-Class roads, and there is insufficient provincial funding to maintain these roads; and

WHEREAS a strong road network is essential to the Province and its residents for economic, social, educational, and health reasons, and increased investment in roads is required;

THEREFORE BE IT RESOLVED the Province provide equitable funding to Towns and Municipalities containing former towns for shared arterial and collector roads in the 2019 Budget or before; and

FURTHER BE IT RESOLVED the Province increase its transportation budget for JClass roads in the 2019 Budget or before; and

FURTHER BE IT RESOLVED the Joint Provincial-Municipal Committee on Roads develop a proposed new funding agreement and plan by the end of June 2019.\

Read the full resolution on Roads

Further Information and Current Progress:

A Provincial-Municipal Roads Committee has developed a new funding proposal to repurpose the current J-class cost-sharing formula. The funding proposal was presented by committee members to The Department of Municipal Affairs and Transportation and Active Transport in early April 2021.

This proposal now falls within the purview of the Department of Public Works. The Minister of Public Works and the Minister of Municipal Affairs have been mandated by the Premier to include funding for municipal roads as an item for discussion in the renegotiation of the Service Exchange Agreement.

WHEREAS municipalities recognize opportunities to accomplish more together and are willing to find new ways of collaborating; and

WHEREAS individual municipalities are often limited in resources to appropriately pursue these opportunities; and

WHEREAS there may be numerous barriers that hinder collaboration; and

WHEREAS all municipalities will benefit from lessons learned in collaborative efforts;

THEREFORE BE IT RESOLVED that the Province provide human, material, and financial resources in the 2019 budget or before, to those municipalities willing to collaborate, based on the specific needs of those requesting assistance.

Read the full resolution on Municipal Modernization

Further Information and Current Progress:

NSFM has advanced toward the goal of modernization in a number of ways. Among recent changes to the MGA, Bill 98 enabled municipal councils and committees to conduct business in online meetings.

In addition to the above, NSFM is working closely with DMAH to ensure legislation regarding municipal codes of conduct is strengthened. Elected Municipal Officials, NSFM staff, and municipal staff are part of the Municipal Code of Conduct Working Group. This Working Group has drafted code of conduct regulations for consultation with the membership. A survey to all municipalities was distributed by DMAH this summer. The Working Group is reviewing survey responses and determining how sanctions will be applied to ensure that the renewed Municipal Code of Conduct has sufficient “teeth” that can be engaged when necessary.

WHEREAS operational costs continue to rise due to factors beyond municipal control, and provincial financial support has not kept pace; and

WHEREAS one in five property tax dollars collected by municipalities are transferred to the Province;

WHEREAS the legalization of cannabis is creating a new revenue source for both the federal and provincial governments, yet municipalities are incurring a significant portion of the associated costs

THEREFORE BE IT RESOLVED that the Province freeze mandatory education payments for each municipality at 2017 levels; and

FURTHER BE IT RESOLVED that the Province increase its annual funding for the municipal equalization program by $20 million over three years, beginning in 2019; and

FURTHER BE IT RESOLVED that the Province of Nova Scotia cost share 50/50 in all municipal projects required to comply with the Accessibility Act, if those projects do not receive other funding, beginning in 2019; and

FURTHER BE IT RESOLVED that the Province provide municipalities with a substantial share of all the related tax revenues being generated through the sale of cannabis.

Read the full resolution on Municipal Funding

Further Information and Current Progress:

NSFM has requested provincial support in the form of a 50/50 cost share for all municipal projects required to comply with the Accessibility Act.

The Provincial government doubled the Municipal Financial Capacity Grant, for one year, while a new MOU is established with municipalities. NSFM has requested that increased funding remain in place until the new MOU takes effect.

NSFM continues to press other orders of government for increased access to funding to support general services as well as specific service and regulatory responsibilities at every opportunity.