by Richard Gleeson
Northern News Services

NNSL (Oct 10/97) - Some Yellowknife residents want to know how the city can afford to pay $10.5 million for a new community centre, yet must levy a series of monthly charges to residents to cover infrastructure costs?

Municipal election candidates at the Yellowknife Seniors Society mayoral forum last week were confronted with the issue of city spending, an issue on which property owners will have a say come election day.

A plebiscite asking for ratepayer approval to borrow $3 million for road work next year is being held in conjunction with the election. Only property owners are eligible to vote in the plebiscite.

Sue Glowach questioned candidates about the affordability of the proposed twin pad arena and community centre complex.

"The total borrowing for that will be $3 million to $4 million," said mayor Dave Lovell. "That's a lot, but the city can handle it."

A few minutes later, Glowach asked why a $10 levy needs to be added to her $130 monthly water bill.

Lovell explained the fee was implemented to purchase and pay for the baling facility, installed to extend the life of the landfill.

"Wait a minute," said Glowach. "How can we have a surplus 10 minutes ago (during discussion of the proposed arena) and now need $10 a month to pay for the dump?"

"The city has been putting money away in a reserve fund for the arena," said candidate Vi Beck. "That's why that money is there."

Lovell said the apparent inconsistency is the result of the city's accounting system, which divides the budget into separate `funds'.

"The city is run like a series of companies," said the mayor, later adding, "One council put the $10 charge on to build (the baling facility), and another council later on said it was going to cost ratepayers $10 a month to operate it."

The $10 levy is one of three user fees included on city water bills each month.

Another $5 infrastructure fee is charged to subsidize replacement of infrastructure. A $3 fee is used to pay for insurance against the freezing of water lines from residences and businesses to city water mains. If a pipe freezes, the insurance covers the cost of repair, after the resident pays a $500 deductible.

Lovell and mayoral candidate John Dalton, then a member of council, argued against continuing the $5 levy during debate of the 1997 budget. Council voted to keep it. Beck and Ruth Spence were among those who voted to continue the levy.

According to the city budget, monthly user fees generate a total of $1.9 million annually.