Hay River (July 24/06) -Hay River's positive financial position - including accumulated surpluses - has one town councillor suggesting a rebate of this year's municipal tax increase. Dean McMeekin proposed the rebate after hearing auditor Tod Ashton praise the town's healthy books at a July 10 meeting.

In particular, the auditor noted that, as of the end of 2005, the town had accumulated surpluses in its various funds, including more than $1.3 million in its general operating fund.

"For me, it's personally hard to justify why we raised taxes," said McMeekin.

Council increased the mil rate 1.25 per cent in this year's budget. According to the town's own financial rules, council can spend $643,000 of the surplus in the general operating fund. McMeekin wants part of that available money to go for a tax rebate, noting this year's tax increase will generate an additional $188,000.

"I think we have to live within our means and give people a break when we can," said the councillor, who voted against the tax increase.

McMeekin has asked town administration to work with the auditors to develop a plan for how the extra funds could be rebated. No motion for such a rebate has yet been put forward to council for a vote.

The accumulated surplus in the general operating fund includes $773,000 from last year. That amount was the result of no operating expenses at the town's new pool when its opening was delayed earlier this year, as well as increased revenue from tipping fees at the landfill site and savings from unfilled positions at Town Hall.