Yellowknife (Dec 03/04) - At least one businessman in Yellowknife thinks City Hall's proposed tax hikes over the next three years are unreasonable.

The proposals contained in a document made public by city administrators last Monday states a tax hike of 8.55 per cent is possible over the next three years.

Real estate developer Les Rocher criticized the City's proposed 2005 budget. Rocher said a full analysis of other methods of saving public funds must be examined. The solution is not to raise taxes, he said. - Stephan Burnett/NNSL photo

The proposed budget specifically calls for a tax hike of 2.85 per cent next year and "similar increases" for 2006 and 2007.

"With all the new housing, apartment buildings, government and otherwise, the city's tax base has increased substantially. Why they need the extra money is beyond me," said Les Rocher, a real estate developer and owner of Homes North.

Rocher said the potential tax increase over the next three years will affect his company's ability to sell and buy properties.

For the Yellowknife Chamber of Commerce, time is the real issue behind the proposed budget.

The chamber has been looking for more of it to provide feedback into the City's budgetary process, said Trent Fequet, first vice-president for the chamber and chairman of the chamber's government affairs committee.

"Every year they come out with a budget two weeks prior. Why can't they come out with a budget two months in advance?" Fequet asked.

"Last year the comment was, 'Come on guys, we need more time,' and this year it's the exact same scenario," said Fequet.

The net increase to the tax base after reduction in property taxes from the mines and including new properties on the market is only $120,000, said Dave Devana, director of corporate services with the City of Yellowknife and one of the architects of the proposed budget.

"The net effect of $120,000 to the positive is not enough to cover increase in costs," said Devana.

City Councillor Doug Witty provided assurances that the present document is "not written in stone."

Witty said while the development of the Ekati and Diavik Diamond Mines have been beneficial to the territorial government, they have put added pressure on the municipal government for infrastructure needs, which have not been met through any corresponding increase in funding from the government of the Northwest Territories.

The loss of revenue from Con and Giant Mine combined with inflationary factors, primarily salary increases for the City's administrative staff, have all added up to the decision to recommend a tax increase, said Witty.

"The cost of doing business in Yellowknife has gone up significantly and we also have a collective agreement that we are contractually obliged to meet. They (City Hall employees) get an increase and that money has to come from somewhere," said Witty.

Seize the land

If the closures of Con and Giant are being blamed for the hike in taxes, Rocher says the City should seize the land, resurvey and sell the uncontaminated lands for development. The real estate developer said the contaminated lands need to be cleaned up by those responsible.

"The solution is not to raise taxes," Rocher said, adding other methods of saving money such as retooling the operations at the City's landfill must be examined.

"The number one thing is a full analysis needs to be done," he said.