Tarad Kearsey
Northern News Services

Yellowknife ( Jun 07/00) - After last year's 3.7 per cent tax hike, ratepayers are facing a reduction in mill rates this year.

The decision to cut municipal taxes by approximately two per cent was approved during yesterday's Corporate Services Committee meeting at City Hall.

Mill rates were raised last year to recover a loss of tax revenue after Giant mine went bankrupt.

As a result of Miramar's purchase of the Giant mine property after the 2000 budget was adopted, the city will now collect property taxes this year that were not accounted for in the budget. That means the city is facing a net anticipated surplus of $272,484.

"I think that if you have unanticipated revenue excesses, it should go back to the taxpayers," Mayor Dave Lovell said during the meeting.

"Now that the revenues are back again we can go two per cent down (with the mill rate) and I think that's fair," said Lovell. The 2000 mill rates now stand as follows: residential -- 8.63 (down 2.04 per cent); multi-residential -- 8.94 (down 1.97 per cent); commercial -- 15.17 (down 2.00 per cent); and the mining/quarry rate remains constant at 12.

The adjusted school mill rate is expected to be adopted by council sometime this summer after the 2000/2001 requisitions are received from both school boards.

The city is working towards the establishment of a financial policy which will state the need to maintain a minimum balance in the general fund. The purpose for implementing this policy is to prevent the raising of taxes and fees or reducing service levels when it experiences temporary revenue shortfalls in the future.

City councillors will vote on the cuts at next Monday's council meeting.