CBRM's financial picture slowly coming into focus

Is the Cape Breton Regional Municipality managing its money properly, or is it headed for the poor house?

According to the latest financial indicators from the Nova Scotia Department of Municipal Affairs, CBRM is at least treading water.

But the department is also funding a study into whether the municipality is viable in the long run.

The latest financial condition indicators were released to council earlier this week, but haven't yet been posted to the government website.

Numbers show some improvements

The province measures 13 indicators, such as debt servicing, financial reserves, reliance on government funding and tax levels.

This year, CBRM improved in four areas, stayed the same in four and deteriorated in five.

But Coun. Kendra Coombes said the numbers don't tell the whole story.

"That's the provincial indicators, but that's not the reality we're looking at as councillors around the table," she said.

Coombes said councillors struggle with the budget every year, tinkering with costs and trying to find ways to save money.

Still, the municipality hasn't been able to maintain roads and sidewalks, let alone build new ones, she said. That's not the kind of thing the financial indicators measure.

CBRM's chief financial officer, Jennifer Campbell, said the provincial indicators are useful for detecting certain trends, but they can also be contradictory.

We're doing the best of what we can with what we have, but we can't continue down the path.- Jennifer Campbell, municipality CFO

For example, improving on the undepreciated assets measurement would require borrowing, but that would make the debt servicing number worse, said Campbell.

The indicators do show some positive signs, she said, but they also contain gaps.

"We're doing the best of what we can with what we have, but we can't continue down the path," Campbell said.

"Something has to change. We need some kind of financial injection to help with our infrastructure or with our operating, or both."

Accounting firm hired

The province has hired accounting firm Grant Thornton to do a viability study that's due in May.

It is examining CBRM's revenues and expenditures and comparing it to other municipalities of similar size and type.

The study could recommend more provincial funding or other revenue changes, said Campbell. It could also suggest cutting expenses or a combination of revenue and expense improvements.

Campbell said she expects the study will find the municipality is not viable in the long run.

"I actually am really looking forward to the outcome of this study," she said.

"I think it's going to support what administration and council have said all along."