Study to probe CBRM viability
Independent consultant to examine whether municipality has fiscal capacity to operate in an effective manner
Cape Breton Regional Municiplaity officials want to know if the municipality has the resources to properly fund the services it is required to provide.
To that end, the local government’s Viability
Study Steering Committee has proposed that an independent consultant be hired to examine whether the Cape Breton Regional Municipality has the fiscal capacity to operate effectively.
Veteran councillor and committee chair Darren Bruckschwaiger said the CBRM has been struggling to sustain itself since the amalgamation of eight former entities (Sydney, Glace Bay, New Waterford, Dominion, North Sydney, Sydney Mines, Louisbourg and the County of Cape Breton) in 1995.
“I really think this is going to answer some questions,” said Bruckschwaiger, who noted the municipality is continuing to lose about one per cent of its population annually while its unemployment rate remains high.
“This is going to be a complete review of everything and hopefully at the end the report will show what many of us believe and that is that we are not viable on our present path, it’s just not there — this study will really show our situation and from there the province will have to decide.”
On Monday, the committee approved the recommendation of chief financial officer Jennifer Campbell that the accounting firm of Grant Thornton be hired to carry out the $219,000 study. She said three other companies — Stantec, KMMG and Deloitte — also applied to carry out the work.
CBRM council is expected to approve the committee’s decision later this week.
Campbell said the analysis will specifically provide a description of the present state of CBRM’s tax base, tax rate structure, tax burden and a value-for-money assessment of the municipality’s budget expenditures on a departmental and project-by-project basis.
“(The report’s) commentary should be provided on the specific challenges facing the municipality as well as the state of the finances and the overall viability of the CBRM as an organization,” Campbell told the committee.
“There should also be a specific focus on whether the CBRM has access to adequate revenue to provide a reasonable level of quality services at a reasonable tax burden and effort for its residents.”
Mayor Cecil Clarke said the viability study is important, and that it’s critical it separate the political messages regarding the sustainability of the region from the financial realities of the municipality.
“This is also very important for citizens validation in knowing that the municipality is operating within the resources available to it in a responsible way,” he said.
“It’s also very important that we look for a replacement of the equalization program and we look for a new municipal funding relationship with the province.”
A report on the study’s findings is to be completed by
March 31, 2019.
The CBRM had a 201819 operating budget of about
$147 million and a capital budget of almost $34 million. The municipality’s revenue includes about $108 million in taxes, $9 million in grants in lieu of taxes and $15 million in what is listed as a provincial operating grant but considered by many to be the amount the province passes on to the CBRM as its share of the $1.8-billion equalization transfer Nova Scotia receives annually from the federal government.