Tax hike proposed in draft budget
Council gets first detailed look at numbers; possible rate increase of 2.55 per cent included
Shane Magee
Northern News Services
Wednesday, November 9, 2016
SOMBA K'E/YELLOWKNIFE
City councillors were handed the proposed 2017 city budget that envisions a 2.55 per cent tax rate increase as spending climbs to $82.2 million.
Councillors were given an overview of the draft spending plan Monday at a municipal services committee meeting by Jeff Dalley, the city's director of corporate services.
Expenses are expected to climb by $1,379,600 compared to this year, driven in large part by a $569,700 increase in employee pay and benefits.
The city plans to increase the tax rate by 2.55 per cent to cover the $681,800 shortfall between revenue and expenses.
Coun. Niels Konge, who wants to keep property tax rate increases to zero, said he needs to examine the details of the 355-page budget.
"I've been the zero-per-cent guy from day one. That's where I'd like to end up but we'll have to see what there is in (the budget)," Konge said in an interview after seeing the budget presentation.
There was little discussion of the contents of the budget during the Monday meeting. Council will hold detailed talks in December.
Konge noted the budget doesn't include a number of recommendations from the recently completed fire department master plan, which recommended adding firefighters.
One recommendation has been budgeted - adding two more emergency dispatchers next year.
Thirty one per cent of the proposed budget, or $25.5 million, covers salaries and benefits for staff. The city's employee roster is projected to grow to 219.7 full-time equivalent positions, up from 214.6 this year, in part because of the new dispatchers.
Konge expressed satisfaction that the federal government's infrastructure dollars will take some of the burden off the city.
In the past, council has held long sessions cutting capital spending to reduce proposed tax rate increases.
The city's budget includes both operations spending and three-year capital spending plans. There is $31.6 million expected to be spend on capital projects, of which $10.2 million is paid for by the federal government. Highlights include $16.5 million in water and sewer work, $4.8 million for roads and transit, $1.9 million for 50 Street revitalization and $1.6 million on community energy plan projects aimed at reducing the city's carbon footprint.
The draft budget doesn't include a council wishlist of projects that include things like a $10,500 water fountain at a downtown park, $709,000 for a new downtown RCMP patrol unit, traffic lights at the intersection of 44 Street and 50 Avenue, and contributing $100,000 more to the Safe Harbour Day Shelter. Together, the 19 projects would require a 10 per cent property tax rate increase, Dalley said. The budget also doesn't include projects recommended during ongoing public consultation.
All of those additional items are expected to be considered later in the budget process.
The city plans to hold an open house to gather public feedback on the draft budget on Nov. 15 and 17 at city hall. The meetings will occur at noon to 1:30 p.m. and then from 7 p.m. to 8:30 p.m.
The budget would then go to council Dec. 5 with deliberations the following two evenings.
Deliberations in the past few years have lasted about a week with multi-hour evening meetings where councillors go page-by-page discussing line items in the budget.
