Budget Bulletin: Municipalities

GREENER COMMUNITIES
Improvements to Nova Scotia's municipal infrastructure continues with an additional $1.5 million directed to the Provincial Capital Assistance Program (PCAP) for a total budget of $4.25 million. These funds are used to help municipalities with sewer, water, and solid waste projects, like the Halifax Harbour Project.

Nova Scotia is investing $500,000 in 2006-07 and $1.4 million in 2007-08 to improve septage facilities. Operators of existing privately and municipally operated treatment facilities will be eligible for up to 50 per cent of the cost (up to $100,000) of new technologies for treatment systems, including engineering studies, environmental monitoring requirements, construction costs, and sludge treatment. Operators of existing facilities will also benefit from a grant program that will provide up to 50 per cent of improvement costs (up to $50,000). This program will help protect the quality of drinking water and groundwater resources through proper construction, maintenance, and operation of these treatment facilities.

RATE REDUCED
The Mandatory Education Rate is being reduced. This reduction puts the rate at 34.5 per $100 of assessment, down from 35.10 per $100 of assessment. Municipal contributions to education will still increase by $7 million; however, that contribution was projected at $10.2 million before the rate reduction.

GRANTS INCREASED
Approximately $3.2 million will be provided from Nova Scotia Power Inc. to be used in lieu of taxes to municipalities. The investment will result in a increase of $1 million in equalization payments received by municipalities, an increase of $1 million in grants to municipalities based on the location of NSPI assets, and an increase of $1.2 million in grants for university properties. This allows the province to commit to 100 per cent funding of university resident grant payments and fulfils a long-standing municipal request.

COMMUNITY CONNECTIONS
A feasibility study will be conducted into the 211 service for communities. The CRTC has provided this number to the United Way to help Canadians find information and referral services for community, social, health, and government services. There are 211 services now in the United States and in Toronto, and this study will help to determine whether there is a business case for this approach in Nova Scotia.

Note: For further 2006-07 budget information, see the Department of Finance website at <a href="http://www.gov.ns.ca/finance">www.gov.ns.ca/finance<a/>