Residents’ requests won’t be in city’s ‘bare bones’ draft budget

When the City of Yellowknife releases its draft budget in January, some residents shouldn’t expect to see their spending wishes listed.

City councillors discussed the municipality’s upcoming 2024-25 annual budget at a meeting on Monday afternoon, including requests recently submitted by several residents – ranging from an outdoor hockey rink to improved cemetery maintenance – as well as funding requests from three non-profits.

While councillors said many of those proposals were good ideas, they were not in favour of city staff including them in the draft budget.

“This year, more than any year, we need a bare-bones budget, and I think that’s what the public are requesting from us and demanding from us,” councillor Steve Payne said, a position echoed by several others.

Mayor Rebecca Alty said while she did not support adding more items to the draft budget, councillors could still add items once the draft is released and before the budget is finalized.

One funding request some councillors did support was forgiving $60,000 of a $100,000 loan to Folk on the Rocks. Mike Westwick, one of the festival’s directors, had told councillors Folk on the Rocks intends to reinvest the funds in renovating the beer garden stage.

Councillors Tom McLennan, Garett Cochrane, Cat McGurk and Ryan Fequet supported the request, saying it would be an investment in city-owned resources and ultimately generate revenue.

Mayor Alty and councillors Payne, Rob Warburton and Ben Hendriksen voted against the proposal. They said it could set a precedent of allowing organizations to alter previously agreed-upon deals with the city, and would be inconsistent and unfair to other organizations requesting support.

As the number of votes for and against the motion were tied, the motion was defeated.

Abby Schelew, a spokesperson for the city, told Cabin Radio that initiatives proposed by the public could still be reconsidered during budget deliberations.

Each year, City Hall staff put together an initial budget based on city needs and additional items supported by councillors. City council is then responsible for whittling down the budget to ensure the city meets its requirements and offers services to residents while, ideally, not triggering an unreasonable tax increase.

Legally, the city is required to present a balanced budget every year, meaning planned spending has to match what the city expects it will receive in revenue.

Expect ‘tight and frugal’ budget

In an overview of what to expect when the draft 2024-25 budget is released, Kavi Pandoo, the city’s director of corporate services, said it will be “tight and frugal.”

He said there are “volatile economic conditions” across Canada and internationally, including high rates of inflation, supply chain issues and climate challenges.

He added the city is also facing a lack of affordable housing and a stagnating population, cautioning councillors that the city can’t afford to do everything residents may want without large tax increases.

“You will never be able to please everyone all the time. Disputes around financial decisions will always happen because there’s a need list and there’s a want list,” he said. “I know it’s a difficult task on your head, because it is not easy to find the right balance.”

“If we need to find more money for certain things, we either raise revenues or lower expenditures,” city manager Sheila Bassi-Kellett added. “That’s the grim reality we all face in our own lives, and it’s certainly the grim reality we face as a municipal corporation.”

Pandoo said the city currently expects the budget to include $24.7 million in spending on capital projects, including $3.6 million for the new aquatic centre, $2.8 million for lagoon sludge removal and $2.2 million for work at the landfill.

Bassi-Kellett said the city is prioritizing projects where costs are expected to increase the most.

One project where costs have significantly increased since it was first approved, she said, is the expansion of the fire hall, which is expected to account for $4.5 million in the next budget.

Human resources recruitment costs are expected to increase by $35,000 compared to the 2023 budget due to staffing challenges, Pandoo said. IT security and software maintenance is also expected to increase by $101,000 compared to the last budget as a result of “digital security challenges.”

The timeline for the 2024-25 budget has been pushed back because of this summer’s wildfires.

The draft budget will be presented to city councillors on January 15, then the public will have until January 31 to provide input. Councillors are scheduled to deliberate the budget from February 5 to 8, then approve a final budget on February 12.