Whitehorse Daily Star

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Rob Hines

Spending decisions far-reaching, council reminded

Decisions today by city council will affect spending requirements years down the road, says Range Road resident Rob Hines.

By Chuck Tobin on January 23, 2012

Decisions today by city council will affect spending requirements years down the road, says Range Road resident Rob Hines.

Hines asked members of council at last Monday evening's meeting to keep that in mind as they consider the proposed 2012 capital budget calling for $25.5 million in expenditures.

Much of the capital spending outlined in this year's budget is a result of commitments made by city councils in years gone by, Hines said during the time allotted for public input in the proposed budget.

Of the total budget, he pointed out, $20 million is for engineering and construction costs.

Hines suggested the decision to spend $400,000 on the preliminary design work for Porter Creek D points toward more urban sprawl that can have costly implications for taxpayers.

Municipal studies from down south indicate that low-density developments increase the burden on the tax base and push up housing prices, he told council.

"My advice is, please consider the cost to taxpayers when deciding about how Whitehorse will grow into the future, because the decision that you will make this year will affect budgets for future councils,” Hines said.

"My challenge to council is for council to commit to come under budget with what is proposed here tonight.”

The capital budget is scheduled to come back before city council at next Monday's meeting for the third and final reading.

Mayor Bev Buckway has yet to table the annual operations and maintenance budget, which is generally three to four times larger than the capital budget.

The 2011 budget, for instance, was $80.3 million: $59.3 million for O & M, and $21 million for capital.

Coun. Ranj Pillai told Hines his call for caution was right on the money.

All the revenue from the sale of lots in the new Whistle Bend subdivision will go to the Yukon government as the developer, the councillor pointed out.

He said the city will get the $2,000 or $2,500 in development charges for each housing unit but that will not come anywhere near covering the cost of providing additional services, like transit and a new fire hall.

"So your are right,” Pillai told Hines. "We have to think that way, or we are going to be broke.”

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