Iqaluit trims budget to reduce property tax hike

Iqaluit city councillors met Monday night at a Finance Committee of the Whole meeting to continue work on the budget after it failed to be approved by council at its last meeting.

A proposed 1.5 mill rate increase was reduced to one, meaning the mill rate would increase to 27 from 26. The mill rate is the basis of property tax paid by homeowners, and is a measurement of dollars per $1,000 of a home's assessment.

But further reducing the mill rate meant councillors had to find another $180,000 to $200,000 to cut from the budget.

Public Works had a long list of equipment they had hoped to buy, including a dump truck at a cost of almost $185,000.

Councillors agreed to cut the truck, but a fence around the public works area has been put back into the budget at $64,000, as well as a fire safety training kit at $10,000.

Deputy Mayor Mary Wilman worried about lowering the mill rate too much.

"By reducing the mill rate so low, is there a possibility of it becoming accumulative?" she asked. "What do we do next year? Do we have to increase it by 3 mil?"

City administrator John Hussey said that depends on expenses and revenues throughout the year.

The revised budget will be brought to city council on Tuesday night for final approval.