Here's how much Halifax property taxes may increase in coming year

Halifax regional council votedto reduce 2019-2020 property tax rates at a session Friday, but that doesn't mean that homeowners will see a lower tax bill.

Council voted to bring the tax rate down 0.3 per centbut the average assessed home value is going up 2.6 per cent, so many homeowners will still pay 2.3 per cent more on their next bill an increase of $43 to the average residential tax bill, according to city staff.

The average assessed value of a home in the urban areas of the municipality is currently $235,292and going up to $241,390 in 2019-2020.

Meanwhile, the urban residential tax rate will go down from81.75 cents per $100 of assessed value to 81.5 cents.

Mayor's suggestion to use surplus rejected

Mayor Mike Savage tried to edge the overall increasedown slightly from 2.3 to 2.1 per cent, pointing to the $20 million surplus expected on the 2018-2019 budget.

Just over half of that surplus has been earmarked for new capital projects. That includes $600,000to expand transit operations.

Finance officials want to put the rest of it which has mainly come from higher-than-expected deed transfer tax revenue into reserves. But the mayor pointed out that it would only take another $900,000from the city to makea 2.1 per cent increase possible.

"We're suggesting less than one-twentiethof this year's surplus be given back to the people who paid for it," said Savage.

A number of councillors agreed with the mayor, including Coun. Matt Whitman.

"It's symbolic," said Whitman, "Sometimes symbolic is important."

But the municipality'schief administrative officer, Jacques Dub, warned the move could create risks for future budgets and several councillors agreed with that analysis.

"One time, non-recurring surpluses should never be used to fund ongoing operating expenses," said Coun. Shawn Cleary.

"You can't do stuff like this for a few bucks on someone's tax bill."

The vote on the mayor's motion ended in an 8-8 tie, which is a loss. After that, the 2.3 per centincrease was approved.

A final decision on next year's budget, including the tax rates, is expected by mid-April.