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Inuvik taxpayers spared
by Ian Elliot
INUVIK (Jan 30/98) - Town council gave approval this week to a draft budget that contains no tax increases.
Over the protests of Mayor George Roach, who argued town residents both expect and can afford an increase of as much as five per cent, councillors tentatively accepted a budget that will see the town spend $3.7 million in 1998 as opposed to the $3.2 million it spent last year. The town is projecting revenue of $3.7 million, as compared to the $3.3 million it budgeted for last year.
The largest ongoing cost will be the new arena and the recreation budget has been increased to almost $660,000 to cover the operating costs, a hike of almost $125,000 from what it budgeted for last year.
Roach called the budget "a false economy" and argued in favor of a tax hike several times during the evening, saying the town is in debt, living on a line of credit, and should pay off what it owes with higher taxes.
The mayor distributed figures showing that a five per cent tax increase would raise the taxes of an apartment dweller $17 a year and the most expensive houses in town $100 a year.
But other councillors shot down his suggestion, saying town taxpayers have already seen their cost of living increase on a number of fronts already.
"The people of Inuvik are taking punches left, right and centre and I think they're getting pretty punch-drunk," said councillor Vince Sharpe, disagreeing with a tax increase.
Councillor Dan Davis concurred, saying, "All of the people in this town are facing increases in fuel, water, power, everything and on top of that we have an economy in the shitter. That's the word for it. We can't take a tax increase."
The budget will be voted on by the full council on Wednesday evening.
Meanwhile, bingo players will not be taxed by the town either.
Councillor Vince Sharpe recently wondered aloud whether the town could legally tax money won in the many bingo games that take place in town.
Noting that $1.8 million was paid out in games in Inuvik last year, and the town made its only money issuing licenses that allow the games to take place, Sharpe wondered if the town could slap a surcharge of five per cent on winnings, which are currently tax-free. For example, a $100 win would pay out only $95 if the suggestion was implemented.
"With five per cent, we'd come close to collecting $100,000 a year," he said.
John Picek of the Ministry of Municipal and Community Affairs, though, was at the meeting and had investigated the possibility of such a charge earlier in the day. He told Sharpe the town could not legally tax winnings of bingo games. |