Residential and commercial mil rates will rise 5.05 per cent to 18.94, while the industrial and institutional rate will increase 5.07 per cent to 22.8 mils.
It had been expected the mil rates would rise about 10 per cent to help pay for a new $6 million pool currently under construction.
However, the assessment base of the town has grown by about $2.7 million because of increased land sales and new housing and commercial starts. That growth and the increased mil rate will increase tax revenues by $204,568.
"We have experienced some good growth in land sales," senior administrative officer John Pollard told councillors. Council unanimously passed the budget.
"It's a good news budget," said Coun. Ron Cook.
Budget highlights:
* Revenues and expenditures of $14.84 million in the general operating fund, an increase of $5.1 million over 2004;
* A contract to assess the structure, serviceability and life expectancy of Town Hall will be funded from reserve;
* A second layer of chipseal on Industrial Drive and from Highway 2 to the museum;
* Completion of the Woodland Drive sidewalk from Malcolm Crescent to Riverview Drive;
* Installation of a columbarium to hold ashes at Riverside Cemetery;
* Installation of two remote cameras to allow anyone to look in on Hay River via the town's Web site;
* Completion of the new pool by September and a grand opening in October.