Richard Gleeson
Northern News Services

NNSL (Sep 03/99) - The Yellowknife Chamber of Commerce is calling for the city to cut property taxes by 10 per cent, and though the city has a plan for doing just that it isn't yet prepared to release it to the public.

Where the cash comes from Top four sources, in millions of dollars: User Charges 12.3 Property Tax 11.4 Block Funding 5.4 Grants-in lieu of taxes 2.1 Source: 1999 draft city budget Coun. Robert Slaven: hoping to at least roll back 3.7 per cent increase John Williston: taking a low-key approach

The chamber believes the city needs to adjust to the financial realities of a shrinking tax base in the same way a family faced with the layoff of a spouse would, said municipal affairs committee chairman John Williston.

He said a 10 per cent cut in taxes translates into a four per cent decrease in the city's budget.

The 1999 budget forecast that property tax would make up 34.7 per cent of the city's revenue. The remainder comes mainly from territorial and federal governments.

"If your wife lost her job, there would be some changes to be made and you would make them and life would go on," said Williston.

Last year during the Con mine strike, when rumours were circulating that Giant might close, city council directed staff to formulate two lists of cuts, one to account for a five per cent cut in tax revenue and another for a 10 per cent cut.

But the city is calling those plans "management tools" and says they are, for the time being at least, confidential documents.

Williston said he reviewed the five per cent and 10 per cent scenarios last October.

Robert Slaven was the councillor who first proposed that the scenarios be developed. He said he believes the lists should not be public.

"If a list like that goes public, it makes people think we're definitely going to do stuff like that and all sorts of screaming and panicking will go on," said Slaven.

Slaven said he's expecting all cuts proposed in the upcoming budget debate to be fought over "tooth and nail."

He added that, by his calculations, a 10 per cent cut in taxes will lower the cost of living by in the city by less than a half of one per cent.

Slaven said he is looking for ways to at least roll back the recent 3.7 per cent tax increase.

The key to the debate, he said, will be identifying what services people are willing to sacrifice in order to achieve the cuts.

Williston said he will be approaching councillors and the mayor individually, rather than addressing them at a public meeting.

He added that the chamber believes city directors know where best to make the cuts.

"We don't want to be the ones who go in there and say, 'You should make a big cut here,'" said Williston.

"I don't know where they can cut, but I'm saying as a community we should get together and find a solution."

But Mayor Dave Lovell said he believes the chamber should be specific if it is going to ask for cuts.

The 2000 draft budget is scheduled to be released Nov. 8.