Iqaluit taxes rise by a mere 'twentieth; of a per cent, but garbage and water fees will also go

The bad news is the mill rate for Iqaluit taxpayers will still go up in 2009. The good news is it's the lowest increase in seven years.

Meeting earlier this week, Iqaluit's finance committee approved a $16.5 million balanced budget for 2009 that will see the taxation rate rise by only half a mill.

For homeowners with property assessed at $120,000, that should mean a tax increase of about $60 for the year, said chief operations officer John Hussey.

For a property assessed at $250,000, the increase would be $125 for the year.

Growth in the city's tax base helped offset a rise in some of the city's fixed costs, said Hussey. Power and fuel costs have gone up, and wages increased by three per cent as part of a contract with city workers.

Last year saw the completion of the Inuksigait Plaza complex, the hospital, and significant construction in the plateau and lake subdivisions, as well as the as-yet-uncompleted RCMP and Kamotiq buildings.

Overall, the city had to find an additional $156,000 in property tax revenue to meet the 2009 budget. Iqaluit gets about $4.8 million in revenue from "other sources," Hussey said, including swimming pool and arena fees, fines and grants.

Water and sewer fees and garbage-collection fees will also rise in 2009.

Residential garbage collection will now cost $32.50 a month, an increase of $5, for twice-a-week pickup.

Collection rates for large businesses, which get up to six-times-a-week pickup, will rise from $200 a month to $300. Smaller businesses will rise proportionately.

Hussey said the city's waste management division has been losing money and the increases are meant to address that problem, plus help the department "get on a solid footing and out of its deficit situation" in preparation for the major landfill project it is also launching this year.

For garbage fees, he said, it's the first increase in at least 17 years. "We have a staff member who has been with the city 17 years," Hussey explained, "and he said garbage-collection fees had not gone up since he started with the city."

The residential water rebate is being reduced by two per cent this year as well, which effectively means a two per cent increase in water costs for homeowners.

The average home pays about $150 every two months for water, Hussey said, so that will mean an increase of $3 on the bi-monthly bill.

Commercial water users, who don't get the rebate, will also see their rates rise by two per cent.