HAY RIVER - Hay River residents won't get the tax decrease they were hoping for this year, but neither will they have to pay more.

Mayor Kelly Schofield says it's impossible to find cuts to lower taxes.

On Jan. 27, town council approved operating and capital budgets for 2011, and held taxes at last year's levels.

However, council had entered budget deliberations hoping to lower taxes.

"We talked about trying to decrease the mill rate, but we knew that it would be very slight, if anything," said Coun. Kevin Wallington. "So to be able

to hold the line and not increase, we're not saying it's perfect."

Mayor Kelly Schofield said there seemed to be agreement throughout the community that residents did not want tax increases.

"We did our job. We did it well," he said. "There was not one tax increase. We did not affect services in any way, shape or form."

Coun. Ken Latour said council made reasonable and responsible decisions.

One contentious issue in the operating budget was a decision not to give the Hay River Chamber of Commerce more money to run the Visitor Information Centre.

Last tourism season, the chamber received $39,967 in funding, but it was requesting $55,000 this year.

"We honestly couldn't do it," said Schofield. "We had the same group coming to us telling us to cut taxes and try to save money."

Earlier on Jan. 27, council received a letter from the Chamber of Commerce stating it could not continue to run the Visitor Information Centre without the increased funding.

Coun. Bernie Langille was the only councillor to suggest increasing the funding to the chamber.

"I think we should consider giving the Chamber of Commerce $55,000

and letting them continue to do the excellent job that they've done in the past," he said.

Langille added the town cannot expect the Chamber of Commerce to run the Visitor Information Centre at a loss and the town would not be able to run it for less than $55,000.

"I take offence to that," Deputy Mayor Mike Maher responded. "We ran it for a lot less than that in the past."

Langille voted against the operating budget, which passed six to one - one councillor was absent from the special meeting.

Langille explained he voted against the operating budget because of the funding issue for the Visitor Information Centre and to express concern that the town had not lowered taxes.

"I honestly don't think we've cut enough from the budget," he said.

Schofield said, if the Chamber of Commerce does not run the Tourist Information Centre this coming summer, the town will take over the operation.

The capital budget passed unanimously.

Schofield said the highlight of the capital budget is the planned start of construction of a new fire hall at the end of the summer.

"We definitely want to see some work being carried out this year," he said.

The town's annual budget is normally passed before the end of the preceding year.

However, council approved a provisional operating budget on Dec. 20 to keep the town running, and set the end of January as the deadline to pass a final budget.

The main reason for the budget delay was the town was unable to find a new director of finance until late in 2010.

We welcome your opinions. Click here to e-mail a letter to the editor.