Halifax Water Proposes Up to 9% Rate Hikes for 2027 and 2028
Halifax Water is seeking residential rate increases of up to 9% in both 2027 and 2028 to cover rising operational costs. While the utility projects a total potential hike of 14-18% over two years, CEO Kenda MacKenzie anticipates an approved range of 7-8% annually. The proposal faces scrutiny from Mayor Andy Fillmore, who warns of a compounded 40% increase when combined with recent hikes.
Halifax Water has proposed significant increases to residential water rates, seeking hikes of up to 9% in both 2027 and 2028. If approved, these changes would take effect on April 1 of each respective year.
The utility’s leadership indicates that while they could seek a total increase of 14-18% over the two-year period, Halifax Water CEO Kenda MacKenzie expects the final approved annual increase to fall within the seven to eight per cent range. This adjustment is driven by rising operational costs, including expenses for fuel, electricity, water treatment chemicals, wages, salaries, and the maintenance of aging infrastructure required to meet federal standards.
Financial projections highlight the pressure on the utility's budget. Expenses are expected to rise by 13.8% in 2027/28, reaching $249 million, and by another 9.4% in 2028/29, totaling $273 million. Of these projected costs, $64 million in 2027/28 and $68 million in 2028/29 are allocated specifically for salaries and benefits. Additionally, Halifax Water’s accumulated deficit is projected to reach $23.8 million by the end of 2026/27.
The proposal must first be approved by Halifax Water's board at its meeting on September 24. Following internal approval, it requires authorization from the Nova Scotia Regulatory and Appeals Board. Recent history shows the board approved a 12% increase in January and a further 6% increase in April.
Halifax Mayor Andy Fillmore has criticized the potential hikes as too burdensome for residents. He noted that when combined with recently approved increases, the new proposals could lead to a compounded 40% increase in rates over just a few short years. Premier Tim Houston also expressed a desire for greater accountability and indicated he is looking at levers to keep rates in line.
Despite the proposed increases, Halifax Water states that local rates remain below the national average. The average estimated annual residential cost for water in Halifax is currently $1,099, compared to a national average of $1,307. Both Mayor Fillmore and CEO MacKenzie agree that the utility needs additional funding sources beyond ratepayers, such as partnerships with provincial and federal governments.