Maria Canton
Northern News Services

NNSL (July 07/99) - Talks on how concerned citizens should proceed against the city's recent tax increase were to be held this morning at the Yellowknife Inn.

The City of Yellowknife Property Owners Association organized the "coffee session" press conference to bring the issue to light and to gauge how upset property owners are.

"We wanted to put the idea out there to see if anyone else is as upset as we are," said Mike Byrne of the City of Yellowknife Property Owners Association Tuesday.

The association feels public pressure may force councillors to reconsider the hike.

The meeting was being held in light of last week's decision to increase the mill rate by six per cent -- resulting in a direct 3.7 per cent property tax increase.

The other 2.3 per cent, which will generate no new revenue for the city, is a mill rate adjustment reflecting the decline in Yellowknife property values determined by the 1995 and 1999 general property value assessments.

Councillor Kevin O'Reilly says in order to maintain the standard of programs and services offered by the city, there has to be a tax increase.

"I'm a taxpayer too, I don't like to pay more, but at the same time I'm not willing to give up the services that the city provides."

He also says all of the city's expenditures fall under the budget for this year.

Faced with a two-fold problem of declining property values and Giant Mine's inability to pay $893,000 in property taxes over the last two years, the city had to make adjustments and increases in order to absorb the losses.

However, a mechanism is in place that would allow city council to rescind their decision on the tax increase, says the association.

But in order to begin the process, a councillor in favour of the increase would have to introduce a notice of motion to rescind.

Tax bills were mailed on June 30 and property owners will see the 3.7 per cent increase on their bill.