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

Halifax Water is seeking approval for substantial increases to water and wastewater connection fees for new construction projects. The utility has applied to the Nova Scotia Regulatory and Appeals Board, proposing a 650 percent jump in water hook-up fees and an additional 265 percent increase for wastewater connections.

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It’s across the spectrum that there’s going to be an impact. 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.

According to Halifax Water, these proposed hikes are necessary due to escalating infrastructure costs, faster-than-expected growth within the municipality, and shifts in housing patterns. General Manager Kenda MacKenzie explained that the increased funds are crucial for necessary upgrades, citing inflation and rising labor costs as predominant factors driving the higher cost of infrastructure.

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Those are the predominant factors that are going into the increase of the cost of the infrastructure needed.

However, the proposal has raised alarms among the construction industry. Duncan Williams, president and CEO of the Construction Association of Nova Scotia, worries that the increased fees will impede growth. He stated that the hikes could be the deciding factor that prevents some projects from moving forward. Mayor Andy Fillmore shares these concerns, questioning the impact on home building and affordability for potential buyers and renters.

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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.

MacKenzie attempted to mitigate concerns by suggesting the charges be recovered at the time of meter connection, aiming to make it more affordable for developers. Despite this, Williams acknowledges that such an increase was likely inevitable given recent rate freezes. He emphasizes the need for future-oriented planning, considering the significant population and economic growth Halifax is experiencing.

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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? I fear that it will.