City proposes 4.68 per cent tax hike
Another three per cent increase in facility fees also on the table
Cody Punter
Northern News Services
Published Friday, May 9, 2014
SOMBA K'E/YELLOWKNIFE
City administration unveiled plans for a 4.68 per cent tax hike during a preliminary presentation of its 2015 budget projections at a municipal services committee meeting on Monday.
The $69.5 million budget, which is also calling for a three per cent increase in user fees at city facilities for the second year in a row, includes $21.1 million worth of capital projects ranging from $8.3 million for the water treatment plant all the way down to $110,000 for a new strategic plan for city's fire department.
Although the projected budget is actually more than $10 million less than last year's $81.1 million budget, it won't mean a corresponding drop in property taxes. That's because property taxes are mostly used to fund the city's operations and maintenance spending, which isn't going down, only capital spending.
According to Carl Bird, director of corporate finance, a large portion of the proposed tax increase is needed to offset an expected $1.016 million increase in the city's operational costs as measured by the Municipal Price Index.
The index, which calculates inflationary pressures on a municipality by taking into account staffing and service costs, as well as consumer and construction price indexes, is expected to jump up by three per cent next year, up from 2.66 per cent the year before.
The remainder of the proposed increases will cover the cost of adding new city staff to the tune of $198,000. This will provide for the city's new dispatch service, which is set to launch at the end of next year, as well as a new bylaw officer and a communications officer.
The expansion of the city's transit service, which was approved last year, is expected to cost $231,000 in 2015.
Although city council will not officially begin offering input on the budget until May 26, several of them weighed in on the topic Monday, saying they would like to dissect the budget in more detail than they have in the past.
"We can do a better job this year," said Coun. Rebecca Alty.
Alty was joined by several other councillors in saying that she would like each of the city departments to find ways to reduce their operational budgets.
As an example, she pointed to a flat screen TV that was purchased for the Fieldhouse last year.
"I assume that (the TV) was well over $1,000 plus the monthly cable fee, which if we had the monthly basic package is $60 a month, times 12 months for a total of $720 a year," she said.
"This is just one visible example but I know this is happening in all departments and all divisions."
During the meeting, senior administrative officer Dennis Kefalas said he has already told his departments to come up with a list of efficiencies to be presented to council as part of the budget process.
In the meantime, council seems determined to mitigate the impact of a potential tax increase on residents.
"If we can't get below the (proposed) property tax increase I think there will be some serious negative repercussions from the community at a large," said Coun. Phil Moon Son.
