Whitehorse Daily Star

Consumers' group questions size of tax increase

The territory's Utilities Consumers' Group (UCG) is voicing disapproval of the budget the city tabled in December.

By Whitehorse Star on January 15, 2007

The territory's Utilities Consumers' Group (UCG) is voicing disapproval of the budget the city tabled in December.

At Monday evening's meeting of council, UCG president Roger Rondeau said his organization has concerns about the city's proposed five per cent tax increase.

' ... I have some bricks to throw at you and they won't all be bouquets,' Rondeau warned council before launching into his organization's concerns.

He said his group did not say anything with the spate of two per cent property tax increases in recent years because they seemed reasonable. However, it's now questioning the latest five per cent hike built into the new 2007 budget because it seems excessive, Rondeau said.

He said he can't understand why the city would need so much extra cash. The city is already making extra revenue as property assessment values have gone up, and there are more houses and commercial properties in the city adding to the tax base, he pointed out.

Property values are assessed for taxation purposes by the Yukon government every few years and the city's tax rate is applied to those assessed values.

According to documents tabled at council last year, the average tax levy rose by $126 between 2002 and 2006.

In 2002, according to city information, the average value of land improvements was $80,910 and $38,240 for land, for an total average value of $119,150.

The average tax levy in 2002 was $1,429.

For 2006, the average value of land improvements was $84,140 and $47,280 for the land itself.

In 2006, the average tax levy was $1,555.

The 2007 municipal budget calls for an additional five per cent tax increase.

Rondeau said the UCG also had concerns with financial commitments the city made with respect to the Canada Winter Games as council appears to have been writing cheques it can't cash without going back to the tax base.

Porter Creek resident Carole Bookless also expressed concerns that council is raising taxes to pay for big-ticket 'wish list' items instead of earmarking tax dollars for essential services, including fire protection.

'I have a general concern that essential services such as snow removal, garbage pick-up and fire safety are being underfunded or that needed upgrades are being postponed or modified in order to save money to fund non-essential wish list items such as additional funding to make up for funding shortfalls with the Canada Winter Games, the multiplex and a splashy waterfront development,' she told council.

Coun. Doug Graham said in an interview this morning one of the big reasons for the five per cent tax hike is to meet higher than expected costs and lower than expected revenues at the Canada Games Centre.

'One of the big reasons, of course, is the Canada Games Centre,' he said. 'It's the primary driver.'

Other reasons for the tax hike, he added, are wage increases for city workers, the hiring of additional employees and cost of living increases.

Be the first to comment

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.