‘New budget, new year, same story’ for Hay River?

The Town of Hay River has passed its 2024 budget with a projected operating surplus of $2.29 million, up 14 percent from last year’s budget.

The town’s 2024 budget includes $17.6 million in revenue, up eight percent from 2023, and more than $15 million in spending, up seven percent from last year.

Also included is an increase in property tax revenue of $543,000 – or eight percent – compared to 2023 that the town says will come from higher tax rates, as well as an extra $769,000 in revenue from land sales at Fraser Place.

The town plans to use its operating surplus to tackle infrastructure projects.

During a council meeting on January 8, Glenn Smith, Hay River’s senior administrative officer, said the town is facing challenges including inflationary pressures, climate change and chronic underfunding. Hay River’s 10-year plan, he said, is underfunded by $8.8 million annually, meaning the municipality doesn’t have the funds needed to replace core infrastructure and continue offering municipal services in the coming years.

“New budget, new year, same story. Underfunded along with the rest of the tax-based communities in the Northwest Territories,” said Keith Dohey, Hay River’s deputy mayor, during the meeting in which councillors passed the budget.

Dohey said he’s hoping the new territorial government will work to close the municipal funding gap, adding several MLAs were previously municipal councillors. The new communities minister, Vince McKay, was formerly a councillor in Hay River.

“I hope we’re able to move that ball a bit further to the end zone,” said Dohey, “because every year seems to be further and further behind and not a lot’s been changing. So we need to stop trying to have our taxpayers subsidize a government shortfall.”

The previous NWT government said it had reduced the municipal funding gap by $5 million between 2019 and 2023. Some MLAs, however, said that had done little to address the gap, which was calculated at more than $40 million in 2019, particularly given the impact of inflation over time.

Among Hay River council’s top budget priorities this year are developing and implementing wildfire and flood recovery and mitigation plans, alongside planning for the impact of future extreme weather events.

Other budget priorities include diverting waste from the landfill, updating the town’s agriculture plan, and completing an electrical services franchise agreement with the territorial power corporation. That last priority will depend on the outcome of a regulatory process that continues with a public hearing this week.

In spending, an additional $20,000 was added for this year’s municipal election and $40,000 for legal fees related to collective bargaining.

The budget includes an additional position at the fire department, increases to firefighter compensation to support increased service demand, and increased ambulance rates to reflect increased operational costs.