City unveils draft budget, sees 2.87 per cent tax increase
Public, councillors still to weigh in before planned 2016 spending approved
Shane Magee
Northern News Services
Thursday, November 12, 2015
SOMBA K'E/YELLOWKNIFE
The city's draft 2016 budget forecasts a property tax increase of 2.87 per cent to cover a shortfall.
Jeff Dalley, the city's director of corporate services, gives council an overview of the draft 2016 city budget Nov. 9 during a municipal services committee meeting. - Shane Magee/NNSL photo
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The increase represents an additional $17 per $100,000 of assessed property value. For a home assessed at $300,000, it would mean a $52 increase said Jeff Dalley, the city's director of corporate services.
The proposed increase comes after council slashed $2.1 million in spending to reach zero-increase in property taxes last year. The last increase, of 3.109 per cent, came in the 2014 budget. There was zero increase in 2013.
The $68.6 million budget for 2016 was presented by Dalley to councillors during a municipal services committee meeting Monday. There are still several steps to go before the plan is approved, including public consultation and additional councillor input.
Dalley highlighted several proposals in the budget suggested by councillors during the first round of budget feedback this summer. Some have not yet been costed.
"For every $260,000 in additional spending from the general fund, it equates to a one per cent tax increase," Dalley said.
The budget has a third of revenue coming from user fees, nearly 40 per cent from taxes, 23 per cent from other levels of government and a little more than four per cent from land sales.
The projected tax increase of 2.87 per cent is below the 3.5 per cent given by Dalley earlier this year during a budget presentation.
Spending is expected to grow by $1,074,147 compared to the 2015 budget. Of that, $723,958 is tied to increases in salaries and benefits, the largest single budget component, which accounts for $24.7 million of planned spending. Next year, the city expects to have 214.58 full-time equivalent staff members, down from 216.31 this year.
The city plans to spend $50,900 to hire a fire code inspector partway through the year. Director of planning and development Jeff Humble said that's because the city hopes to take on work currently carried out by the NWT fire marshal's office.
The fire marshal reviews development plans for buildings larger than a single family home to ensure structures will be built to meet the fire code.
"We approve a lot of permits per year - on the construction side about $80 million annually," Humble said.
If council approves the spending, city administration hopes to reach an agreement to take over that fire code work to speed up the development permit process, he said.
Water, sewer, solid waste fees could increase
Dalley noted staff are recommending the city increase the water and sewer user fees by three per cent next year, four per cent in 2017 and 2018, and one per cent in 2019. He said the water and sewer fund will be balanced in 2018 because of the increases.
The fund covers the operations, maintenance and delivery of water and sewer service.
The solid waste management user fees are expected to increase 2.5 per cent each year until 2019, when it would be balanced. That fund pays for garbage and recycling service.
After the presentation from Dalley, Mayor Mark Heyck opened the floor to comments from other councillors, reminding them that council will have the opportunity to talk in much greater detail about it later on.
Coun. Niels Konge was the only one to ask a question - seeking to find out what the projected tax increase would mean in dollar terms for an average taxpayer.
Konge also requested administration come back to council with an analysis of the impact of water, sewer and solid waste user fee increases for the average city resident.
Splash pad a reality in proposed budget
The budget forecasts $16.6 million in spending on capital projects next year, including $570,000 to build a 3,000 square foot splash pad next to Somba K'e Civic Plaza where the horseshoe pit is now. A splash pad is an area with water fountains that the public can play in. Range Lake North School students brought the idea to the city, which Heyck suggested in June be added to the 2016 budget.
Operations and maintenance of the splash pad is expected to cost the city $19,000 in 2017 and $20,000 in 2018.
Construction of a tourism kiosk in Old Town is expected to cost $50,000.
Other large capital projects include $2.85 million to pave sections of Franklin Avenue, Cameron Road, Etthen Drive and Taltheilei Drive. Expanding the landfill to add more capacity will cost $3.5 million, while growing the composting area will cost $750,000.
Streetscaping 50 Street is expected to cost $1.6 million.
A complete version of the city's draft budget with details of the planned capital projects is available on its website.
The city also has a budget survey available on its website. As of Nov. 3, there have been 120 responses. Of those, 73 per cent of respondents said they want increased spending on city services and amenities.
It will hold an open house on the budget Nov. 17 and Nov. 19 in council chambers at city hall.
The sessions will run from 11:30 a.m. to 1:30 p.m. and then 7 p.m. to 9 p.m. those days.
