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Council slams brakes on potential tax hike
Mill rate increases will be revisited after community opposition

Casey Lessard
Northern News Services
Monday, March 23, 2015

IQALUIT
It was back to the drawing board this weekend as Iqaluit city councillors forced themselves to review their 2015-16 mill rates, which were criticized by city businesses and homeowners alike.

Council voted March 10 against the first reading of a bylaw that would allow a mill rate increase to go ahead.

"It was honestly a surprise for me," said deputy mayor Romeyn Stevenson. "I didn't expect the chair of the finance committee would go back on our own budget. I was flabbergasted at the time."

Finance committee chairperson Kenny Bell justified his decision to renegotiate the mill rate.

"We need to do better internally," Bell said. "We can't cut the local businesses off at the knees. We need those businesses to employ and develop here in Iqaluit for us to succeed long into the future."

Bell, Terry Dobbin, Noah Papatsie and Simon Nattaq voted against the first reading, forcing a revisit. Stevenson, Stephen Mansell and Joanasie Akumalik voted in favour.

For Stevenson, his surprise was accredited to the fact that councillors agreed, after in-depth discussions, to the original and contentious mill rate increases.

"We're looking at essential things in this budget," he said. "I don't think there'd be anyone who knows anyone in this city right now who would want us to be cutting work on the utilidor lines in Happy Valley (some residents were without water in that neighbourhood most of last week). It's something we're spending money on. We're spending on staff members, but it's not frivolous in any way. We can't go forward without working on the new landfill and waste management plan. If we don't spend it, we'll have to pay for it next year and we'll be a year behind."

Stevenson pointed out that rejection was absolutely acceptable as a part of the process. Council must vote and agree to a motion three times before it becomes a law.

"Not all of them (the councillors who voted against it) would acknowledge that they were changing their minds, but they are changing their minds from what they have decided," Stevenson said.

The rejection meant they were set to spend Saturday determining what to do next.

"Either we're cutting things out of the budget, or we're sticking with the mill rate. There's no other way of getting around it," Stevenson said. "My opinion is that we stick with the mill rate we suggested. The only other option is that we change the mill rate balance. You could lower the commercial mill rate and raise the residential mill rate, and put that same spending on the backs of the homeowners."

Councillor Mansell supported the original plan.

"I know the increase was not popular and would have put an increased burden on Iqaluit homeowners and business, but I felt it was necessary to address serious budgetary concerns facing our city and to fund some vital public works projects," he said. "It is my assumption that those members have in mind alternative means of revenue generation or new cost cutting measures which were not identified in December. I hope we can come to a decision that will get the support of council and will be more acceptable to ratepayers."

The mill rate - which is the amount of tax billed per $1,000 of assessed value - was set to increase by seven per cent for single-family residential, 24 per cent for multi-family dwellings, by 21 per cent for commercial properties, by 31 per cent for industrial, and 25 per cent for institutional ratepayers.

Council will make its plans public on March 24.

Regardless, the day-to-day does not change for citizens.

"The city is not in danger of shutting down," Stevenson said. "Absolutely not. We're all going to work together until we have something done.

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