Public meeting held on town's 2001 budget
Malcolm Gorrill
Northern News Services
Inuvik (Jan 19/01) - Plans to double business licence fees ran into opposition from the Inuvik Chamber of Commerce at a public meeting Tuesday.
"It's not an appropriate time to increase business licence fees," said Lyle Neis, one of a handul of people who turned out for public discussion on the town's 2001 budget.
"Many businesses in Inuvik are just starting to see a brighter future now with increased activity; any increase right now might cause a hardship," said Neis, who was speaking on behalf of the Chamber of Commerce.
The fees are to go up from $50 to $100. The budget also features a general tax increase of two per cent and a two mill commercial and industrial increase.
Therefore, a homeowner currently paying $2,000 in property taxes will now pay $2,040.
As well, the town is deleting a two per cent discount offered to those who pay their taxes within 30 days of receiving their notice.
"With the proposed tax increases, it's a bit of a double whammy," said Neis, who is also general manager with Inuvik Gas Ltd.
Neis acknowledged that rates here are lower than in other NWT communities.
Coun. Denny Rodgers, chair of the administration committee, said that council needed to find ways to raise revenue, and that business licences have cost $50 since the 1980s.
Mayor Peter Clarkson said the town is spending more on economic development and tourism.
"We can't expect the residents to pay the brunt of those costs when the businesses are getting the majority of the benefits, at least the initial benefits," Clarkson said.
Last year business licence fees brought in $17,500. The fees are expected to bring in $40,000 this year, though Clarkson said that figure may rise, as licence fees for out of town businesses are going up from $250 to $500.
Rodgers pointed out the town did not raise taxes for six years before initiating increases in the 2000 budget. He noted that services have become more expensive to maintain.
"We run a balanced budget, and there's not a lot of fat in here," Rodgers said.
Meanwhile, another chamber member, Derek Lindsay, was unable to attend the meeting. He helped members draft a letter to council on Monday.
Lindsay, owner of Lindsay Accounting Services, said the least council could have done was consult with the chamber before proceeding with the fee increase.
The budget goes before council for third and final reading Jan. 24.
