Laura Power
Northern News Services
Friday, May 18, 2007

YELLOWKNIFE - Residents face not only a tax hike this year but possibly an increase in water and sewer fees as well.

Dave Devana, director of corporate services for the city, predicted the property tax increase this year will be 3.24 per cent - slightly less than the 3.7 per cent hike passed by city council earlier this year.

That means each taxpayer will pay about $23 for every $100,000 in the value of their home.

Last year, property taxes were increased by 2.47 per cent.

Devana said if property assessment growth is high, it could offset the tax hike.

At the moment, the city would need four per cent assessment growth to offset the increase.

"What we're trying to say to council is if the city grows, taxes will go down," he said.

He said while the city had that amount of assessment growth in 2005, the number dropped to 1.6 per cent last year.

This year, he is expecting that number to sit at two per cent, or $30 million.

"We're confident that our assessment growth will be $30 million or more, which can help to offset some of the cost pressure," he said.

He said the rate of growth is dependent on development at places such as the Niven Lake subdivision and the Kam Lake bypass road industrial district.

A financial burden for the city this year is a deficit they face in the water and sewer fund.

The deficit is at $115,000 presently, and it appears that taxpayers may need to shoulder some of the burden.

"We don't increase taxes in the water and sewer fund, we increase user fees," said Devana.

The last time the water and sewer rate went up in Yellowknife was in 1994, he said. Two options the city has to deal with the deficit are to increase the rate again or to decrease expenses relating to water and sewer.

He said last year they saved about $75,000 by putting in a thermostat to keep the water at a fixed temperature.