City chops $2.1 million from budget
Councillors mull using $1.3 million surplus to decrease taxes, fund deficits
Randi Beers
Northern News Services
Published Friday, December 12, 2014
SOMBA K'E/YELLOWKNIFE
Residents could see the first municipal tax decrease in recent memory after council cut $2.1 million worth of capital projects from next year's budget.
The proposed budget, as presented to council by Carl Bird, director of corporate services, recommended a property tax increase of 2.98 per cent to cover a budget shortfall of $767,275, which would have represented the 10th tax increase in 11 years.
Instead, council has eclipsed the shortfall by $1.3 million so far by slashing capital projects through all departments, but deliberations are ongoing as of press time and that number could change.
In the coming days council will decide what to do with the newfound surplus.
A majority of councillors have indicated they'd like to at least achieve a zero per cent tax increase and use the remaining surplus to cut deficits in the city's solid waste management and water and sewer funds. At least three councillors – Coun. Niels Konge, Coun. Adrian Bell and Coun. Phil Moon Son –have indicated to Yellowknifer they would like to see some sort of tax decrease. The last decrease – two per cent –occurred in 2000.
Representatives from the Yellowknife Chamber of Commerce have been present for deliberations, which have lasted for at least four hours every night this week.
Deneen Everett, executive director of the chamber, said she's happy to see council is listening to the public.
"I think it's absolutely fantastic," she said.
"There have been a lot of thoughtful comments and it looks like we could be on track for a tax decrease."
Only one item received extra funding next year, as council passed a motion to reallocate $50,000 to the day shelter in 2015 after administration deleted the city's contribution from future budgets prior to deliberations.
Scorched earth budget – but not without debate
Some items, including a $15,600 replacement sound system for a city hall boardroom, were cut without debate.
Other items were discussed more in detail, such as $500,000 allocated for landscaping on 52 Avenue once construction is finished.
$250,000 cut from landscaping
Coun. Niels Konge moved to strike the entire half million from the budget, but Coun. Dan Wong argued administration has already invested money in the project's beautification aspect.
"How much money would we essentially waste? What would we do with empty tree wells and space we wouldn't be able to fill?"
Chris Greencorn, director of public works, said the city would back-fill those holes with gravel, causing Coun. Phil Moon Son to raise concerns about the size of gravel the city would use.
"If it's six-inch pieces of rock we're going to fill in, it's not only going to be ugly, it's going to be a serious safety hazard for the community," he said.
"If it's half-inch, well, maybe at least it's a little more decorative, I guess."
Senior administrative officer Dennis Kefalas answered the city would use three-quarter inch pieces of gravel to fill the tree bases, but they wouldn't be filled to the top because that would require more funding.
Mayor Mark Heyck saved the project by breaking a tie vote, but Coun. Adrian Bell immediately presented a motion to slash it by half instead. It passed with little debate.
Tourism plan trimmed
Landscaping for 52 Avenue wasn't the only project Heyck weighed in on – he passed the chair to deputy mayor Cory Vanthuyne to argue in favour of saving a $97,800 marketing tourism plan from the communications and economic development department, slated for next year.
"I don't know why we spend time and resources on strategies if we don't move forward with recommendations that come forward," he said.
"This was laid out clearly and adopted (by council) with very little discussion. Now to try to remove something like this altogether is not forward-looking and detrimental to what we are trying to achieve."
Coun. Rebecca Alty, arguing in favour of the cut, answered that the tourism strategy has 18 action items on it other than tourism.
"I (doubt) the (department) will have nothing to do related to tourism next year," she said.
Although council voted to cut the marketing tourism plan Tuesday, Coun. Cory Vanthuyne came back Wednesday night with a proposal to reinstate $50,000 toward it, which council approved.
"This is a bit of a knocked-back version of what we saw the other night," he said.
The biggest cut, so far, is $525,000 from the paving project on 50 Street, between 51 and 52 avenues.
Council will debate how to allocate the surplus and adopt the new budget during a special council meeting Monday.
