Yellowknife property owners are facing a potential 7.22 per cent property tax increase this year.
“Last year, we projected a tax increase of 10.45 per-cent in 2024 and a further increase of 7.46 per-cent in 2025. These projections were based on normal circumstances, which have since shifted significantly,” Kavi Pandoo, Yellowknife’s director of corporate services, said Monday.
Pandoo highlighted property tax increases across Canada for comparison, noting that while cities like Toronto and Saint John, N.B., are facing increases between nine and 10.5 per-cent, Yellowknife’s projected increase initially stood at 16.91 per-cent.
This figure, Pandoo admitted, “would probably have not been well received.”
To address this, municipal administrative staff are recommending a draw down from the city’s general fund to mitigate the tax hikes and align with budget policy. An infusion of $3-5 million from the general fund is proposed for 2024, aiming to reduce the tax increase to 7.22 per-cent. Additionally, $2 million will be allocated in both 2025 and 2026, anticipating tax increases of 7.06 per-cent and 9.64 per-cent, respectively.
The general fund opened the year with a balance of $14.7 million.
“As the city continues to build new infrastructure such as sidewalks, trails, facilities, as well as extend the range of programs and services, ongoing maintenance costs increases accordingly,” Pandoo said
He mentioned that the cost of living, inflationary trends and uncertain market conditions continue to pose challenges.
In 2024 the city expects to spend $28.7 million on operations and maintenance, which covers day-to-day costs for services such as recreation and parks, road maintenance, landfill, transit and fire services, among others.
Capital projects are projected to amount to $59.7 million in 2024, with $34.3 million of that carried forward from last year. This includes $3.6 million for the city’s new aquatic centre, $4.4 million for the fire hall expansion, $2.1 million for management of the municipality’s fleet of vehicles, $2.8 million for lagoon sludge removal and $2.2 million for landfill expansion and work on a new landfill.
Council is scheduled to discuss the budget in February, and it is anticipated that the final budget will receive approval on Feb. 12.