Peter Crnogorac
Northern News Services
Wednesday, March 02, 2007

YELLOWKNIFE - City council voted Monday to hand back control over property assessments to the territorial government after city officials were unable to find a contractor willing to take on the job.

The city took over property assessments from the territorial government in 1996, which are handled through a private contractor. The present five-year contract with Teranda Assessments expires April 1, 2008.

"It was an attempt at independence," said Mayor Gord Van Tighem last week.

Dave Devana, director of corporate services, described a number of setbacks the city has faced since switching assessor contractors four years ago.

"The contract with (Teranda) was signed in 2003," Devana said. "The assessment activity was significantly lower at that time. The contractor now feels the contract should be significantly higher."

The GNWT, through the minister of Municipal and Community Affairs (MACA) provides property assessment for all communities, except Yellowknife.

Ten years ago, the city started to provide the service for itself through a memorandum of understanding (MOU) with MACA.

The present deal calls for the territorial government to provide the city $700,000 over five years to cover assessment costs.

Stewart Weir MacDonald, using assessor Darcy Beck, took the first assessment services contract from the city in 1996. In 2003, Stewart Weir MacDonald decided not to renew the contract.

The city then passed the property assessment service to Teranda Assessments - the only company to tender, which is owned by Darcy Beck.

Due to the large number of assessments, Teranda subcontracted some of the duties to GT Property Assessment Services.

Teranda has indicated that it does not want to renew the contract but may be willing to provide assessments through MACA's property assessment division. Last week, council discussed hiring an assessor in-house, but Devana warned that the city could not compete with territorial government wages.

"With one assessor, there is vulnerability if that person decides to leave," Devana said. "If you lose the person at the wrong time, the potential loss in revenue would be significant."

He also said there is a shortage of experienced assessors in Canada, and if they were successful in hiring one, the salary would be about $80,000 a year.

The city collects about $17 million in property taxes that goes into the city's general fund.

A variety of services and programs in Yellowknife rely on this fund.

The City of Yellowknife conducts about 5,500 property assessments a year, according to city records.

Devana said that if MACA does take over assessments, they would likely do so in mid-2008.

MACA has some concerns we are working through," he said. "They want to take over through a one-year transitional period."

Council voted 3-1 Monday night to terminate the MOU, with Coun. David Wind the lone dissenter.

He said the city could keep the assessment service and rely on the territorial government should the city run into trouble providing it itself.

"I'm confident the GNWT assessors will back us up if we run into trouble," said Wind.

- with files from Mike W. Bryant