Council begins review of spending plan for 2001
Tara Kearsey
Northern News Services
Yellowknife (Nov 17/00) - Councillors have their calculators and pencils out as they review the city's 2001 draft budget.
Mayor Gord Van Tighem and all councillors, except Dave Ramsay, attended a special Priorities, Policies and Budget Committee meeting Wednesday night to be briefed by staff.
The briefing was originally scheduled to be held in-camera, but after the meeting commenced, council decided it should be open to the public.
The budget calls for revenue totalling $34,416,000, down from a 2000 forecast of $34,648,000. Expenditures for 2001 are projected at $31,618,000, up from the 2000 forecast of $29,243,000.
The major source of revenue is expected to come from user charges, projected at $14,910,000. The budget also predicts two significant revenue losses this year.
The city expects to get $93,000 less in property taxes from Giant Mine property in 2001, the result of a decreased property assessment and scaled back mining operations. Tax penalty revenue is also expected to decline by $300,000 as a result of council's decision to reduce the penalty rate on tax arrears from 1.8 per cent to 1.0 per cent monthly if the individual entered into a monthly repayment plan.
Property taxes on new building are expected to generate $135,000 in 2001, while total taxation revenue is expected to rise by $260,000, to $14,149,000.
At the same time, the city will see a $155,000 increase in wages due to a $1,250 increase for employees negotiated in the 1999 contract reached with unionized civic workers.
That will be offset by a reduction of employees in the Public Works Department, a $50,000 cut from community grants funding and a contingency fund reduction of $144,000.
Another bite on the budget is higher oil prices, resulting in a $73,000 increase in water and sewer expenditures.
The new arena, expected to begin construction in the last quarter of 2001 will use up $1.3 million of the Major Community Facility Reserve fund.
Now that councillors have have their first look, the public will get their chance.
The 2001 Draft Budget can be viewed at City Hall, the library or on the city's Web site. The public will have an opportunity to comment on the proposed budget during a special council meeting on Nov. 20 at 6 p.m. A public open house will be held in the lower boardroom. of city hall on Nov. 23.
