Yellowknife's property tax rate will rise an estimated 1.86 per cent in 2018.
Dec. 6, 2017
The tax hike was approved by city council Monday when it adopted next year's $76.56-million city budget.
The property tax increase however, is notably smaller than the 5.64-per-cent hike originally proposed by city administration.
Property taxes are expected to generate about $27.8 million for the city next year, or about 36 per cent of the Yellowknife's total revenue.
Over three nights of lengthy budget deliberations, council made a number of budget cuts in an effort to bring down what would have been the largest property tax rate increase since 2010.
Among the items to get the axe were the anti-poverty initiative ($75,000), the School Draw parking lot improvement project ($213,000), and an RV Park feasibility study ($50,000).
A proposed extension to the Frame Lake Trail ($300,000) was deferred to 2019.
Councillors made a $20,000 cut their travel budget and reduced spending on a solar panels project by $150,000.
Additions were also made to the budget.
Namely, four new full-time firefighters will be added to the city's payroll in October, at a total estimated cost of $133,000 for wages and outfitting.
The city will also invest in improvements to the Tommy Forrest Ball Park, the Lakeview Heights Playground and a new mountain bike park.
A $256,000 investment from Health Canada and the GNWT will see the street outreach van program that connects residents in need to shelter and health services continue for another year.
This one-time contribution knocked nearly a full percentage point off the original tax hike.
The homelessness employment program will also continue next year.
The 2018 budget earmarks $75,000 for consultations on a new aquatic centre, and $50,000 for a post-secondary feasibility study.
Council agreed to hire a revenue specialist next year, at a cost of $115,000, whose job it will be to seek out alternative funding streams for the city.
The money that specialist may bring in is not included in the budget, but administration expects the position will pay for itself and then some.
User charges are paid by residents for using programs and services in the city, such as field rentals, ambulance rides and waste disposal.
These fees will account for about 34.8 per cent of the city's total revenue next year, and some are set to rise in 2018.
Water and sewer fees will go up by four per cent a year from 2018 through 2020, and solid waste fees are set to go up by 2.5 per cent per year over the same time period.
Coun. Niels Konge was the lone vote opposing the budget.
“I think I see things a lot differently from other councillors,” Konge said after the council meeting Monday night.
The councillor said he was concerned about the decision to hire new city staff given Yellowknife's “stagnant” tax base.
“That is problematic, that gets expensive in the long run,” he said.
An estimated 24.6 per cent of city revenues, or $23.04 million, will come from federal and territorial transfers.
During budget presentations and again in a technical briefing on Tuesday, city administration said the city is operating in the context of severe under-funding by the GNWT, to the tune of about $11 million a year.
The city estimates it will bring in about $77.98 million in revenue next year.