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Iqaluit budget puts tax burden on government Casey Lessard Northern News Services Published Monday, January 16, 2012
The mill rate - or amount of tax property-owners pay per $1,000 of assessed property value - was adjusted this year to reflect increased expenses related to collective agreement and employment obligations, language law obligations and projected power rate increases, the city stated in a Jan. 10 news release. The residential mill rate remains steady at 24.62 for single dwellings and 33.95 for duplexes and triplexes. The commercial rate increases by one to 41.46, and the industrial rate rises by three to 46.53. The institutional mill rate rises by 3.21 to sit at 51.87. Water rates are going up for everyone, but again government and institutional customers will see the biggest hike, 13.5 per cent, compared to residential and commercial users who will see a two per cent increase, chief administrative officer John Hussey said. There is no increase in sanitation rates for 2012, he said. The two per cent increase for residential and commercial users reflects the gradual elimination of a city subsidy from the Government of Nunavut, Mayor Madeleine Redfern said. "That was not supposed to be passed on to residential and commercial customers, so that subsidy has been decreasing at an annual rate of two per cent," Redfern said. Government and institutional customers will absorb the bulk of cost increases stemming from "much needed infrastructure upgrades, maintenance and replacement related to water and sewage, mandated and required by the federal government, Nunavut Water Board, and Workers Safety and Compensation Commission," the release said. The city's $34 million budget - down from $37 million in 2011 - projects no significant cost overruns, the news release said. The audit process revealed such a shortfall in 2011, and the $700,000 overrun resulted in cuts to the 2011 budget. "The 2010 shortfalls were almost all related to fuel spills, so these were not budgeted or projected," Redfern said. Most of the city's budget will go to infrastructure, "especially our water, sewage and assets," Redfern said. "Most of those projects are brought to the council's attention through the senior manager, and we heed their advice." This year, the city will focus on fixing the Frobisher bridge linking the Astro Hill complex, dam repairs at Lake Geraldine, upgrading the Apex garage, and more. It will also buy out the building that houses the Iqaluit Humane Society. By paying out the $199,000 balance from reserves, the city will save $100,000 in interest over 12 years. City staff have also been directed to look at increasing revenue from the gravel pit, with which the city says should be able to break even but loses $150,000 on per year due to a reliance on the honour system.
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