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.
You can check out the entire draft budget here or provide feedback here.