Iqaluit holds the line on property taxes

DAN BENOIT

Iqaluit business owners can expect a 75 per cent jump in garbage pick-up rates, while homeowners can expect to pay more property taxes and water rates, as a result of Iqaluit City Council approving its 2007 budget last week.

The commercial sanitation rate is $100 a week now, but will increase to $175 a week. The residential rate will not change.

But homeowners will see a 2.5 per cent tax increase and a five per cent water rate increase.

Those increases are not new, but are required by an agreement made between Iqaluit and the GN five years ago.

The $31-million Capital Contribution Agreement, signed in October of 2002, states the city has to increase taxes each year by 2.5 per cent of revenue and five per cent each year for water rates between 2002 and 2007, said John Hussey, the city’s director of finance.

The Nunavut government gave Iqaluit the money to pay for infrastructure projects that were sorely needed at the time. The council has little choice but to impose the increases, Hussey said.

But the mill rate, the tax per dollar of assessed value of property, won’t be set until revised property assessments rate are made available by the Nunavut government. That won’t happen until after April 1, Hussey said.

Councillors also talked about turning the mayor’s job into a full-time paid position. Right now, it’s a half-time job.

If the full-time position is approved, the $193,000 allocated to the city council’s operating budget in 2006 would increase to $232,500 for 2007.

The idea of a full-time Iqaluit mayor has been raised several times in recent years but was shot down every time. The mayor’s position now pays $38,000 a year, on a part-time basis.

When discussing the budget for the city’s finance department, Hussey told council the city pays about $100,000 a year in bank and Visa fees, with the Visa account taking up about 80 per cent of it. He said that’s because more people now use Visa cards to pay their bills at the city so they can gather Aeroplan miles.

“We’ve had people come in and pay $150,000 on their land lease. It basically costs the city $8,000 to get it,” Hussey said. Coun. Glenn Williams suggested the city might want to look at putting a cap on bills that may be paid by Visa.

While discussing the public works budget, Williams raised concerns about the use of city vehicles.

“There’s a perception in the city that if you work for the city you get a vehicle,” he said.

He requested a list of vehicles detailing how many there are and which departments have them. He said he wants to get rid of the “clunkers” and examine whether vehicles are necessary in every situation.

Deputy mayor Al Hayward said he was disappointed to see there’s no money allocated for a seaport in this year’s budget.

“This is an opportunity the city can’t miss the bus on,” Hayward said.

Mayor Elisapee Sheutiapik said although it’s not always on paper, the proposed seaport is one of the city’s highest priorities.

The head of Iqaluit’s recreation department head, Mike Courtney, asked council for $500,000 to study the idea of a multiple-use arena. Courtney’s request was excluded from the budget vote, as was a request from Rod Mugford, chief of municipal enforcement, for money to pay for two more bylaw officers.

All members of council, except for Coun. Mark Boudreau, who is ill in Ottawa, attended the entire budget process.