Iqaluit budget proposes higher property taxes, fees

Iqaluit residents may have to dig a little deeper into their pockets this year if council passes a budget that includes an increase to the city's mill rate.

The latest municipal budget, which has been approved this week by the city's finance committee, calls for the mill rate to go up. The mill rateis the amount of tax paid per dollar on the assessed property value of a residence.

The proposed raise in the mill rate would mean a home assessed at $117,000 wouldhave a tax increase of about $57.

"I've been with the city right now [for] eight years, and this is the lowest mill rate I've seen," chief administrative officer John Hussey told CBC News.

"It shouldn't cause a lot of financial inconvenience to the residential homeowner. I know a lot of them realize the fact that the city is going through a massive growth period, but they see a lot of positive things taking place right now."

The budget also proposes increases in water rates. Commercial and government users would pay two per cent more for water, while residential users would see their water rebates go down by two per cent.

As well, the budget proposes a $5per month increase in garbage pickup rates for homeowners.

The budget will go before Iqaluit city council on Feb. 10 for final approval.

Hussey said salaries for Iqaluit's 137 full-time municipal employees will go up by three per cent this year. Fuel and electricity costs are also putting pressure on the city's budget, he added.

At the same time, Hussey said, the city's growth is bringing in additional tax revenue that is helping to keep taxes down.

City officials say their priorities this year include dealing with an overflowing landfill and repairing the Arctic Winter Games Arena.