Nathan VanderKlippe
Northern News Services

Yellowknife (Nov 13/02) - Yellowknife is growing faster than expected, but the city is having to cut programs as a result of unexpected spending in 2002, particularly on the twin-pad arena.

A copy of a draft budget obtained by Yellowknifer indicates that the city's tax base grew by $12 million more than expected in 2002 -- which means a $180,000 increase in revenue.

But although revenues are up, they're not up enough --- without a $700,000 addition to the budget, the city won't meet its debt stabilization guidelines by 2005. The draft budget hints at an increase in mill rates to make up that shortfall, pointing out that the city has only increased its tax rates once since 1994.

All of those decisions will be made by city councillors over the next couple of weeks.

"Indications over the past two years from this council is to not have increases in taxes, fees or levies," said Mayor Gord Van Tighem, who added that some of the revenue shortfalls could come from a re-working of water, sewer and garbage rates.

Under the draft budget, the city will borrow over $2 million for road servicing in the next two years. However, to cut costs some pipe replacement work will be deferred to a later date.

Also in the budget is an allocation to hire four new firefighters, at a cost of $187,000, and another to conduct a community energy study, which would go for $50,000. One of the bigger expenditures will be a $750,000 replacement fire truck.

The budget will be made public today. About 50 copies are available at city hall, while others will be on display at the public library. Council meets for a special budget session Monday to hear public input on the budget.