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'Unprecedented' spending City proposes $84.4 million budget for 2013Simon Whitehouse Northern News Services Published Wednesday, November 21, 2012
Council walked into their first municipal services committee Monday, and were greeted with a presentation for a budget that puts city spending for 2013 at $84.4 million - nearly $14 million more than the budget presented to council last year. The 2013 expenditures includes a figure, $9.8 million, that accounts for amortization - the depreciation of capital assets over time - similar to one introduced for last year's budget. It does not represent actual spending for the year, but with $31.6 million set aside for capital expenditures, next year's budget is "unprecedented for Yellowknife," according to Carl Bird, director of corporate services. Despite the budget's size, administration is proposing the lowest property tax increase in several years at 0.86 per cent, a much lower rate than the 2.97 per cent proposed in September, and also significantly lower than the 2.83 per cent property tax increase approved by council last year. The budget increase is largely attributed to the $20 million loan council approved earlier this year to pay for the new water treatment plant and other capital infrastructure replacements for crumbling water and sewer lines and roads. The graph at the right shows how long-term debt will rise to more than $20 million next year compared to less than $2 million this year. Coun. Phil Moon Son raised a number of concerns this week with the budget, including the lack of time for consulting the public, which only has next Monday night to speak to it at city council. "I am kind of concerned about the consultation period because it is difficult to properly consult stakeholders adequately and get their feedback in time if we want to pass the budget within (three) weeks," he said. "I think that is unrealistic." Moon Son is one of a number of councillors wanting to further lower the tax rate to zero per cent, which administration says will mean a $202,000 cut in services. He doesn't see a lot of changes happening with the capital expenditures and says it "will be a challenge" in the remaining time to find the savings to get to the tax freeze. He was one of two city councillors wanting an extension to the budget schedule for this purpose. At the same time, user fees are expected to go up with an average increase to recreational facility fees by three per cent. The monthly solid waste management levy for single-detached homes is slated to rise by two dollars to $16.50 and fees for garbage pickup at multifamily residences and large buildings are expected to rise by 10 per cent. A four per cent increase is also proposed for the water and sewer fund over the next three years. Coun. Cory Vanthuyne said he is aiming to attain the zero per cent tax increase, but wants to ensure that services and programs aren't affected too dramatically. He was the sole councillor to oppose last year's budget. He is a lot more optimistic about the direction of this document and is more likely to approve it, he said. "We are finally developing a budget and a plan that is starting to bring some positive development growth forward and that a means bigger tax assessment base and that we can pay our own way rather than going to the unlimited credit card of tax increases to citizens," he said. "The presentation was an 0.86 per cent increase and that is without council flipping through it page by page. I look forward to identifying a few ways to find areas where we can make a few cuts." The public is invited to make presentations at the Monday, Nov. 26 regular meeting. Council will review the draft budget during a special municipal services committee meeting, Dec. 3, before voting on it Dec. 10.
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