Parade of tax hikes ‘ridiculous’: councillor

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“We’re living way beyond our means.”

City councillor Doug Graham made the statement Monday night after voting against the first reading of the city’s proposed $55.7-million operating budget for 2009.

That’s in addition to the $33-million capital budget tabled late last year.

A property tax increase of four per cent and a jump in the price tag on most city services, except for garbage collection, was tabled as part of the city’s operating budget.

Among its highest increases is a 12.5 per cent jump in water and sewer bills, that will add $75 a year to single-family residences.

Along with that is a complete cut to the Friday evening bus service, the end of the pilot project that saw a transit loop from downtown to the Canada Games Centre, and cuts to positions in the city.

Graham was the only member of council to vote against the first reading of the budget bylaw, requesting his vote against be recorded into the city’s record.

He argued the information in the budget was presented inaccurately, pointing to a chart showing a 20.5 per cent increase to taxes in 10 years.

As he noted though, this council has only been in office for three years, with those tax hikes totalling 17.38 per cent “through the magic of compounding.”

Along with the 2009 tax hike of four per cent, Mayor Bev Buckway stressed throughout her budget speech last night that it’s expected further tax increases of at least four per cent will follow in 2010 and 2011. The four per cent is a projection that could change, given the uncertainty in the global economy, she said.

Graham said there have also been suggestions that while a four per cent tax increase may hold for next year, the city won’t adjust the mill rate when assessments come out next year.

The Yukon government assesses properties every two years, with the values considered as part of the formula in property tax bills.

In assessment years, when property values generally go up, the city usually lowers the mill rate so property taxes rise by the same percentage they did the year before, for the average taxpayer.

“So you’re looking at a total of about 26 1/2, 27 per cent in five (years),” Graham said of the possible tax hikes into 2011. “And that’s ridiculous. That’s way more than inflation.”

He went on to note the increase to the city’s grant from the government and changes to the city’s fees means the city will see an additional 30 per cent in revenue over five years by 2011.

That money, he suggested, should be going to other things rather than the new executive assistant to the city manager, a position that was recently created.

“The mayor finally got her communications officer, and it’s in the guise of an executive assistant for the city manager, but it’s a communications officer,” Graham said of former local reporter Matthew Grant’s new job.

“I’ve heard for the last three years that we need a communications officer. I think it’s a massive step backwards and I think it’s money we should’ve used, it could have been used, much better (in) other places.”

The pay range for the executive assistant is between $56,097 and $65,975 annually.

In consultation with the human resources department, positions at the city were shuffled around to allow for the new role without impacting the budget, city manager Dennis Shewfelt said in an interview last week.

The city needs to use its money better, Graham said.

As Buckway argued in her 15-page speech, the city is giving taxpayers what they asked for with the combination of tax and fee increases and cuts.

“This is a budget that was created after much deliberation and collaboration amongst the individual members of council as well as consideration of the desire to keep pace with the expectations of our municipality’s primary stakeholders, the citizens themselves,” she said.

“Those expectations, conveyed to us personally through our interactions as public representatives with residents, and more formally through focus groups and our most recent biennial city survey, are very clear: that city services be maintained at current levels and that any additional costs incurred in keeping pace with the cost of living be paid for through a combination of user fee increases, taxation, and a trimming of existing expenditures.”

That trimming of existing costs would include reducing two full-time equivalent staff at the Games centre to save $140,000, not filling a vacant bylaw position to save $84,000, reducing a full-time equivalent in parks maintenance, using federal gasoline tax money to fund a 0.5 full-time equivalent in environment and eliminating the city’s Friday night transit service to save $56,000.

The city also plans to put its economic development strategy on hold.

As Rob Fendrick, the city’s director of administrative services pointed out at a briefing earlier in the day, the city will be saving on staff costs. However, it may not necessarily mean a direct loss of jobs but rather not filling vacant positions (such as the one in the bylaw department) or reducing the number of casual hours in a position.

Fee increases to everything from the parkade charges to road closure applications and an expanded summer day camp operation will mean $743,780 in revenue to the city.

Meanwhile, the four per cent tax hike will represent a $97 increase on property taxes this year for the average taxpayer, who will now pay $1,875.

That amount would see $7 going to bylaw enforcement, $24 to tourism, $57 to engineering, $58 to planning, $76 to transit, $83 for data and computer processing, $135 for accounting and finance, $160 to governance and corporate services, $202 for fire protection, $312 in building and equipment maintenance, $370 for public works and $391 for parks and recreation.

Separate from the tax bills are the city’s utilities: water, sewer and garbage/compost collection.

Those not on the services aren’t billed with the water and sewer accounts held separately and designed to pay for themselves.

“Servicing our ever-increasing and aging infrastructure is a challenge,” Buckway said.

During the afternoon briefing, Fendrick pointed out the 2008 budget for the utilities is running at a deficit, and a three per cent increase to the services should have been included then.

On top of that, he noted increased testing regulations, electrical costs and the cost of maintaining older infrastructure as reasons for the significant hike.

“While taking a balanced approach to municipal finances, we must ensure that we continue to consider the many non-profit and other organizations that serve our community,” Buckway said.

The city plans to put $866,100 into a variety of grants ranging from the seniors’ utility grant to the Youth of Today Society.

The $6-million increase in spending from the city’s 2008 $49.2 million operating budget also comes from a number of land transfers that are being bumped from 2008, Fendrick also pointed out at the briefing.

As she wrapped up her budget speech, Buckway said council is committed to ensuring the city remains an “energetic, innovative, efficient and flexible community and organization.

“Our vision as a government, and as members of our community, speaks to acting in a fair and fiscally responsible manner. We submit that this budget does precisely that.”

While the city’s operating budget for 2009 was tabled last night, council is expecting to vote on the $32-million capital budget on Jan. 26.

No residents turned up for a public input session on the capital budget at Monday’s meeting.