Battle over water levy lost
No tie vote for mayor to break so levy stays

by P.J. Harston
Northern News Services

NNSL (DEC 13/96) - An angry businessman representing Yellowknife's second-highest taxpayer stormed out of city hall Tuesday night after council decided to continue a monthly infrastructure levy.

Kelly Hayden, General Manager of Bellanca Developments Ltd., was speechless.

"No comment," said the visibly flustered businessman following a heated exchange of words with Alderman Trevor Kasteel that took place after the vote.

Kasteel led the charge to continue the levy at council's special budget meeting.

For most homeowners, the monthly levy -- added to waterbills -- works out to $60 a year. But for Hayden's company, it's an $18,000 unrecoverable expense.

Earlier this month, council's committee of the whole recommended dropping the levy, put in place in 1994 when a 15-year program to replace antiquated parts of the water and sewer system began.

Existing and future funding would be used to complete the program, aldermen said.

Hayden was on hand Tuesday to praise them for that decision.

"Commercial property owners are experiencing one of the highest vacancy rates ever in the city and they'll be pleased you're giving them a break," said Hayden prior to the levy debate.

Alderman John Dalton, who opposed the levy, said the city's residents were being hit with government job cuts, government-imposed wage and benefit settlements and further government job losses are on the horizon.

"It's not just $5. It's $14,000 to $16,000 (a year) for some. To me it's $60. I just can't trivialize it -- $60 a year for some is a lot of money," said Dalton.

Kasteel countered that the levy should be continued until the program is finished.

And while Dalton, Mayor Dave Lovell and Alderman Jo MacQuarrie all pointed out that the city doesn't need that revenue any more, Kasteel said the money could indirectly help alleviate the city's long-term debt.

"I want to see the long-term debt paid off. Then (when we drop these levies) there will be an even greater economic impact," said Kasteel.

Following the vote, which amended the city's budget, Lovell said that, although he disagreed with the decision, the city still benefitted from it.

"The city has never been in a better financial situation than it is right now."

To which Dalton added, "Now it's going to be in an even better financial situation, on the backs of the residents."