N.W.T. carbon tax helps reduce Yellowknife's proposed property tax hike to 6%

Yellowknife residents are looking at a potential six-per-cent property tax increase for 2025.

That number was initially at eight per cent, but was reduced partially due to the N.W.T.'s carbon tax. 

Yellowknife city council has been discussing the city's draft budget since Monday, finding ways to cut it down.

At the start of a city committee meeting on Thursday, Kavi Pandoo, Yellowknife's director of corporate services, said the city had managed to reduce the proposed property tax hike to 7.8 per cent with cuts. 

However, the revised amount didn't take into account an unexpected $629,000 from the territory's carbon tax. Mayor Rebecca Alty announced on Tuesday the city had received a letter from N.W.T. Finance Minister Caroline Wawzonek informing them the city would be receiving this. 

Pandoo said it's best practice to not factor in money that hasn't already been received. He said they also aren't factoring in the Northwest Territories Power Corporation's potential power rate increase.

Alty made a motion to incorporate the carbon tax money anyway, since the city was certain it would receive that money before the property tax rate hike goes into effect. 

"We've received the letter, we're going to get the money in 2025, it's basically a no-risk situation," Alty said.  

Council voted unanimously in favour of the motion. 

The city still managed to cut or defer several programs from the proposed budget. 

This includes a prospective city-run dog pound, slated to cost about $550,000 but expected to save the city $40,000 a year. The decision to cut it from the budget doesn't kill the project completely — several councillors said the city needed to evaluate other options first before exploring running a pound. 

There were other things dropped from the budget, including $233,000 work on a field near Fritz Theil Memorial Park to turn it into a soccer field.  

Another $310,000 to refurbish and resurface tennis courts was also deferred to 2026. 

Some of the initially-proposed budget spending was to cover the cost of 10 additional full-time city staff. Through deliberations, the city managed to reduce several of those positions, including a supervisor at the new upcoming aquatic centre, and two more municipal enforcement officers. 

City councillors have also added some things to the proposed budget this week, including $10,000 for bike lanes and an additional $45,000 to repair the dog park. 

City council is expected to pass the budget on Monday.