Yellowknife (Dec 20/06) - The 2007 budget was passed Monday night by city council, sealing a 3.7 per cent increase in property taxes.

Councillor Dave McCann was the only member of the eight person council to vote against the budget. He pointed to his policy of fiscal responsibility in his decision.

Councillor Dave McCann was the only city council member to vote against the 2007 budget. He stated fiscal responsibility as one reason for his choice. The budget includes a 3.7 per cent property tax increase for 2007. - Peter Crnogorac/NNSL photo

"I'm disappointed," he said. "I'm concerned that every year administration is looking for more money. That bothers me personally."

McCann said he would like to see city staff become more efficient in their jobs, suggesting that they could take on more roles within their position. He also suggested some form of incentive for employees to become more hands-on and creative within their roles.

"I don't expect all of our staff to work harder," he said. "But, I do expect them to work smarter."

The seven council members who voted to pass the 2007 budget, all said they were not happy that there was a tax increase, but that a slowing economy and more spending initiatives within the budget warranted it. The 2007 budget has about $52 million in combine purchases and projects.

On Nov. 13, Dave Devana, at a Priorities, Policies and Budget Committee meeting suggested the tax hike.

"The overall city growth slowing down affects abilities for raising funds through taxes and building permits," he said that day.

For 2007, Yellowknifers will pay 3.7 per cent more in property taxes.

The plan for 2008 is to increase taxes another 2.75 per cent. And then again in 2009 by 2.25 per cent for a combined increase of 8.7 per cent over three years. The 2009 increase would mark the fifth consecutive year council has raised property taxes. In 2005 and 2006 taxes went up a combined 4.27 per cent.

Councillor Mark Heyck said he didn't like that a tax increase would occur next year, but thought the fact council didn't borrow money for its projected 2007 spending frenzy was a positive. He said that to accomplish this the tax hike was inevitable.

"I've done some research," he said, explaining that Whitehorse will face a five per cent tax increase for 2007 and Edmonton is looking at a 9.3 per cent hike.

"When we compare our increase to those ones, 3.7 per cent is a pretty manageable number," he said.

Councillor Lydia Bardak said she also regretted that taxes would go up but was also pleased with not having to borrow.

"(I'm) pleased we stayed the course with debt retirement," she said.

"Very sorry we have to start out this council term with an increase, but that being said I'll be supporting the budget."

Councillor Kevin Kennedy said he was happy that up to $75,000 will be in the final budget for a library feasibility plan.

"The library study doesn't necessarily mean we'll build a library tomorrow," he said. "It means we're planning ahead for when we are ready to build a library."

The budget includes $15.8 million worth of capital projects, excluding the potential construction of the proposed fieldhouse, which will not be voted on until January. That project is estimated at $11 million.

Total revenue for the 2006-2007 is projected at $52 million.