by Richard Gleeson
Northern News Services

NNSL (Nov 19/97) - The city's draft budget for 1998 continues a trend of holding the line on taxes and utility rates, but projects a $1.4-million rise in the city's total debt.

The draft budget provides for spending of $29.5 million on revenues of $29.3 million.

The city's debt is projected to rise from $25 million to $26.5 million because of anticipated borrowing next year for the twin-pad arena and multi-purpose community centre and other infrastructure projects.

Payments on outstanding debt are projected to cost the city $5 million in 1998, with another $11 million being spent on salaries and benefits.

The arena and community centre is the biggest capital item, with $10.7 million earmarked to be spent on it in 1998. According to city staff, more than $363,700 has been spent on the facility to date.

City administration is recommending doubling the portion of block funding (the GNWT's grant to the city) devoted to the new centre to $1.3 million in 1998 from $586,000 this year.

By upping the block-funding support, the city will need to borrow only $4 million to build the facility.

Block funding is normally used for infrastructure replacement. The city anticipates GNWT block funding will remain unchanged in 1998, totalling $5.4 million.

A public briefing on the budget will be held at 5 p.m. today at City Hall. Those hoping for grants from the city will be heard Nov. 25, also at 5 p.m. at city hall.

City council debates the budget from Nov. 25 to 27, with final approval slated for Dec. 15.

Following is a list of other items of interest gleaned from the 1998 draft budget:

• About a third of the city's revenue, $11.6 million, will come from property taxes. Water and sewer charges make up the next biggest chunk, at $6.9 million.

• The 1997 draft budget predicted a total debt of $24.1 million for 97. 1998 draft budget says debt stands at $25 million.

• Miramar Con mine continues to be the city's biggest taxpayer, coughing up $1,078,282. Bellanca Developments and Royal Oak Mines were neck and neck for second spot, paying $780,469 and $780,317 respectively.

• City hall is the eighth biggest employer in the city, with 166 employees. The GNWT is the top employer, with 2,145 full-timers.

• Land sales have been even more dismal than anticipated. Only $162,100 worth of city land has been sold so far this year, less than the $220,000 forecast in the 1997 budget. The forecast remains the same for 1998. As of October the city had 90 lots for sale.

• A recommendation that failed to be approved last year has reappeared. The 1998 budget assigns $80,000 for the building of a salvage shed for the dump.