Nathan VanderKlippe
Northern News Services

Yellowknife (Jan 09/02) - To increase taxes or not -- that was one of the key questions facing council at a special budget committee meeting Monday night.

Tax talk comes in the wake of a predicted $230,000 budget shortfall -- which could result in a 1.6 per cent tax hike this year -- along with the possibility of an additional 35 per cent jump in the garbage levy. And, if Monday night was any indication, taxes are a contentious matter.

Northern Federation of Labour President Bob Haywood was the lone presenter speaking out in favour of a tax increase. He called for the city to avoid privatization, saying it leads to companies cutting corners with their employees.

A tax increase only makes sense given that the consumer price index has risen steadily over the past years, he said, and "a 1.6 per cent in taxes is a very small price to pay to keep the services we have."

Bob O'Connor followed Haywood to the microphone with a very different set of opinions. "Canada is a nation of program junkies," said the local businessman. "If there is a way of seeking money from the government, some organization is bound to be formed to do it."

He bluntly called the draft budget "bad," and said he was "really angry" at what he called mismanagement of taxpayer dollars. He dared council to pass a bylaw outlawing deficit budgets, saying, "It is my view that there is no excuse (to run a deficit)."

"I don't support the budget. I reject it as a taxpayer. You're taking money away from the private sector," he said. "You're going to have to tell people, 'sorry, we don't have the money.'"

Yellowknife Chamber of Commerce threw the business community's weight against a tax increase.

"Overall, the budget is a good one," said David McPherson, but added that the Chamber has consistently voiced opposition to tax increases.

"If we can hold the line on taxes, it will improve our position vis-a-vis Alberta and other jurisdictions where we've drawn labour from."

Do more with less

Although the possible tax rise most frequently used was 1.6 per cent, at least one local businessman said the city needs to be more up front.

David Connelly said councillors should include the planned garbage levy increase in their talk of a potential tax increase -- which would amount to total 4.35 per cent tax increase.

"If it's 4.35 per cent, let's have enough character to discuss it as 4.35 per cent, and not try to moderate the reality of a significant increase to the cost of living and doing business in Yellowknife," he said.

He also countered some councillors' black-and-white distinction between either a rise in taxes or cut in services. "There is a third option," he said. "And that's to do what every household and business in Yellowknife has had to do, which is to be more efficient and do more with less. I would encourage the city to do what the citizens have."

A total of 18 presenters made their pitch to councillors. A number of them were invited to make presentations to request municipal core funding money.

In total, groups asked for an additional $98,500 in financing.

The issue of housing was also raised at the meeting. Speaking for the Chamber, McPherson also urged the city to accelerate its plans on housing. "The City of Yellowknife is entering into a period of unprecedented growth, both population-wise and economically," he said. "The mining industry is telling us that they have an immediate need of 200 houses this year and up to 700 in the next three."

"The mining industry is becoming frustrated in their inability to find offer adequate and affordable housing to their employees," he said.

He said the shortage in housing may give the federal government an excuse to avoid sending more workers North and voiced fears of missed opportunities.

Referencing the city's plan to sell another 18 lots in a ballot draw later this month, he said "18 lots is not going to meet the demand. ... We probably need 200 lots in Yellowknife this year. We hope the city will consider an acceleration of the planning process in Niven Lake. You've got to make this land available in the next couple of months."

Mayor Gord Van Tighem predicted that the final budget should be passed on the Jan. 28 meeting of council.

He predicted that taxes would not rise. But increases will probably crop up elsewhere. For example, the corporate services committee will recommend to council at its next meeting a motion to raise ambulance fees. That measure is predicted to increase city revenue by $42,000, but should not deeply affect taxpayers, since most ambulance fees are covered by insurance companies.

However, another idea being considered will have more of an impact: raising the rates of parking meters.

Noteworthy

- Board Sport member Brad Poulter and Shawn McCann of the Board Sport Association asked the city to do more for snowboarders and skateboarders. They requested portions of Bristol Pit be specifically designated a snowboarding area, and that the city put money toward paving the snowboarding park.

- Dave Anderson, president of the Canadian Championship Dog Derby, said new events for 2002 will include a junior race, heritage race and dog pull, all of which are designed to fill in the "dead space" between the departure and return of the dog teams. The race was given $15,000 in special grant money last year.

- Lt.-Col. Rory Kilburn, president of the Yellowknife Airshow Society, said the Yellowknife international airshow -- called "Northern Skies 2002" will feature the Canadian Forces Snowbirds this year, along with a number of civilian air acts and a number of air force and army static displays.

- Director of the Side Door Kevin Laframboise said construction on the organization's new building should be completed by the end of this month, and should be in full use sometime in February. The youth drop-in shelter is working toward financial self-sufficiency, he said.

- The Yellowknife Ski Club requested $90,000 to resurface several of its trails and construct a bridge across Jackfish Creek, to make the club a better training grounds for local national-bound skiers, and to permit the ability to better host major events - perhaps even the 2008 Arctic Winter Games. Dawn McInnes said the club has not sought corporate sponsorship for the upgrades. Councillors also debated whether the money should come from core grants or special grants.