Dear editor,
Thanks to the Yellowknifer for reporting so thoroughly on city issues, including 2019’s balanced budget of $88.51 million which city council passed on Dec. 10.
However, Yellowknifer’s metaphor that the city is a runaway train and that we “spend away as the city has always done” paints a misleading and inaccurate picture of how the city plans, budgets and manages in the best interests of Yellowknife residents.
Over the past 15 years, Yellowknife has expanded physically (Niven, Grace Lake, Hall Crescent, Demelt Crescent and Engle Business District) and this growth translates into construction and then maintenance of roads, parks, water and sewer, and provision of emergency services. We have also added key municipal infrastructure, including the water treatment plant, the Multiplex, the Fieldhouse and Somba K’e Civic Plaza which require yearly operation and maintenance costs.
Historically, when our budget has increased, its typically related to major capital projects, including these as well as other essential infrastructure such as road upgrades/paving and corrugated metal pipe replacement throughout our water and sewer system – fortunately, many of these projects have been offset by federal infrastructure funding.
The City receives its revenues from three main sources: property taxes, user fees and government transfers. Since 2013, property taxes have risen by 7.17 per cent. This is in contrast to the 10.47 per cent increase to the Consumer Price Index and 14.9 per cent increase in the Municipal Price Index over the same time period. In 2019, a modest tax increase of 1.44 per cent will support essential programs and services now and into the future.
The city appreciated receiving input from many residents during budget preparations. The Yellowknife Chamber of Commerce recognized the challenges we face given how the GNWT underfunds the city by $11.4M annually, based on the GNWT’s own methodology. The Chamber also wrote that “we commend the City of Yellowknife for their lean internal operations where wages and salaries represent only 35% of expenditures, a percentage that is significantly higher in many other Canadian jurisdictions.”
Budget 2019 reflects a balancing act -- support for the O&M funding that keeps our essential services responsive and current, along with a prudent approach to capital infrastructure, where 2019 is our opportunity to settle after the two highest years of capital expenditure in the city’s history while we plan future large scale projects like an aquatic centre and a decision on our water source.
Overall, council is pleased with 2019’s $88.51 million budget as it reflects a healthy compromise between what we want, what we need and what we can afford, all while looking ahead to the future. A total of 25 hours were spent by council over six evenings to thoroughly examine Budget 2019.
There were lengthy discussions on how to continue to deliver core and essential services in the most efficient manner possible, cut expenses while maintaining service and staff levels, and plan for much needed infrastructure in the long term. Yellowknifers have mandated us to work in their best interests and we are honoured to do so.