Yellowknife administration is proposing a 2.87% tax increase in the 2016 budget as the City experiences inflationary and growth-driven cost increases to provide existing services.
Jeff Dalley, the City’s director of corporate services, presented a draft budget to council on Monday.
During his presentation, he said the City is budgeting revenues of $67,678,000 in 2016, with the bulk of that coming from taxation and user charges.
While the budget is forecasting a $515,231 reduction in expenditures because of diminishing power and heat costs thanks to LED streetlights and other green initiatives, operating expenditures are expected to go up by $1,296,209 due to inflation, the growth of existing services and the creation of new programs – resulting in a net increase of $780,978 for operating expenditures.
That, combined with a transfer of $531,600 to the Capital Fund and the allocation of $100,000 from last year’s budget, results in a total revenue shortfall of $745,943 following a net revenue increase of $666,635.
For an average homeowner, that would mean an additional $52 in municipal taxes per year and a $17 increase in taxes for each $100,000 of assessed property value.
Councillors will break down the budget in much more detail next month. Public meetings are planned for November 17 and 19 at City Hall.