Doug Ashbury
Northern News Services

NNSL (Feb 03/99) - Why would anyone want to live here? Mayor Dave Lovell says there's lots of reasons.

Yellowknife is a safe community with good educational and recreational facilities, he said.

"I don't think there are many communities the size of Yellowknife that have as much," said Lovell.

Mayor Lovell also pointed out Yellowknifers have not been hit with city tax hikes in the past six years and no increases in water-sewer rates in five years.

As well, Yellowknife has replaced and upgraded its infrastructure while lowering its long-term debt.

Assuming the city borrows $7 million for paving through 2003, and $8 million for community services through 2001, the city's long-term debt will be about $16.7 million. Current debt is $23.6 million ($27.5 million in 1995).

"It is very doubtful we will borrow anything near ($15 million)."

Lovell predicts the city's debt level will be in the $8 to $10-million range by the end of 2003.

Despite what the city has to offer, and its improving financial position, there are a few unknowns that threaten to tax the city's future.

Topping the list is the future of the city's gold mining industry.

"Our biggest current unknown is the threat of mine closures. If Con or Giant close, tax revenue will decrease over a four year period," he said.

"Bankruptcy of one of the companies (Giant's owner Royal Oak) is a more immediate threat," he said.

"There are some hard decisions to be made concerning Giant, and the community will have to weigh the benefits of the 200 jobs and the $25-million annual expenditures the mine makes in Yellowknife against the cost of the exploration grant of $150,000 per year and possible reductions to the $738,000 in school and property taxes the mine pays each year."

Lovell also said he believes the city has lost about 500 government jobs due to downsizing, decentralization and division. But Lovell predicts the city is entering a period of stability or even small job growth on the government side.

On the road to resources, Lovell said Yellowknife must ensure any upgrade in the land transportation system goes through Yellowknife. Lovell and Garth Malakoe, representing the chamber of commerce, co-chair the city's roads to resources committee.

Lovell also said it is key that the city's population be adequately represented in the legislature.

As well as the future of the gold mines and the road to resources and political representation, Lovell pointed to another unknown on the city's horizon. Not surprisingly, it applies to diamonds.

Lovell described Yellowknife as "having its foot in the door" of the diamond industry but, he adds, the city has the potential to be a world centre.

One measure of success in the diamond sector will be if the city has a pool of people skilled in diamond valuation and cutting and polishing and these skilled workers have a choice of diamond-cutting and polishing employers, he said.