Chamber calls for tax freeze
'Something's gotta give' says executive director
Walter Strong
Northern News Services
Published Wednesday, May 28, 2014
SOMBA K'E/YELLOWKNIFE
Alarmed by increases to the cost of living in Yellowknife, the NWT Chamber of Commerce has weighed in on the 2015 municipal budget and is calling for a freeze on municipal tax rate increases.
The City of Yellowknife has a 4.68 per cent increase in municipal taxes built into its 2015 preliminary budget. Mike Bradshaw, NWT chamber of commerce executive director, released a study of nine years of economic data which shows municipal revenue increasing drastically over that time.
"When your consolidated revenue (including operating and capital transfers from the government) has increased by 70 per cent, what are we doing with all those dollars?" Bradshaw asked.
In 2004, consolidated revenue for Yellowknife was $40.6 million. By 2012, it was $68.9 million. Residential and commercial mill rate payers have seen city revenues drawn from their payments increase by up to 88 per cent since 2004. Commercial ratepayers, for example, paid $4.8 million in taxes in 2004.
In 2012, they paid more than $9 million. This 88 per cent increase is matched, the chamber estimates, by an
80 per cent increase in residential contributions to revenue.
The exact figure for residential ratepayers is not available yet because of an issue surrounding multi-family homes.
"The city is treating this like a bottomless well of revenue," Bradshaw said. "The only correct target for tax (increases) over the next three years is zero per cent."
The chamber's statistics also show that by 2012, the city had increased its take from fees, fines and miscellaneous revenues by 81 per cent, from $15.2 million in 2004 to $27.6 million in 2012.
"We're not pointing the finger at anyone," said Bradshaw. "But the bottom line is, something's gotta give."
Residential mill rates have increased by 5.2 per cent between 2004 and 2012. Commercial and industrial mill rates have increased 10.77 per cent over the same period. The dramatic increase in revenue is tied to the increase in property assessment values between 2004 and 2012. Residential assessment values have increased 45.27 per cent, to $863 million from $594 million.
Commercial and industrial property value assessments have increased 69.67 per cent, to $584 million from $343 million.
"The issue with municipal taxation - property taxes -is that every municipality is self-regulating, and they think in 12-month cycles without considering the cumulative impact," Bradshaw said.
"I've talked to members. I have some members who are considering moving to a lower-cost jurisdiction, while just keeping a storefront here."
"It's cheaper to fly people in and out," Bradshaw added.
Over the same nine-year period, the average city employee wage has increased by 40 per cent, to $105,660 from $75,340. The total salary and wage burden from city employees has increased by 60 per cent, to $21.4 million from $13.4 million.
Nine years of city tax increases
2012 (and 2004) City of Yellowknife tax facts:
All property taxes: $23.4 million ($15.2 million) - 54 per cent increase
City fees: $27.6 million ($15.2 million) - 81 per cent increase
Residential tax revenue: $8.6 million ($4.8 million) - 80 per cent increase
Commercial and industrial tax revenue: $9.1 million ($4.8 million) - 88 per cent increase
City salary and wages: $21.4 million ($13.4 million) - 60 per cent increase
Population: 19,752 (19,258) - 2.6 per cent increase
All figures rounded
Source: NWT Chamber of Commerce
