Hay River passes budget with 4% property tax increase for 2026

The Town of Hay River has passed a 2026 budget with an overall four-percent hike in property tax.

That includes a 3.5-percent increase for residential properties and “proportional increases” for commercial, industrial and institutional taxpayers.

Blair Porter, the town’s director of corporate services, said the increase is needed to keep up with inflationary pressures, maintain service levels and help pay for “critical” capital projects, given the town’s long-term infrastructure plan is already underfunded.

The biggest challenge, he said, is funding to cover the new water treatment plant – estimated at $26-$28 million.

Porter noted a public survey about the budget in October received 87 responses and provided valuable insight into community priorities such as roads, sidewalks, water and sewer services, housing, cost of living and economic opportunities.

According to him, the finance committee’s decision to propose a 4.03-percent increase in property tax came in after “extensive deliberation.”

“This measured increase enables us to balance affordability with the need to maintain essential services and sustainable long-term capital planning,” he told a council meeting this week.

While town revenues in the budget decrease by approximately $612,000 due to changes in grants and land revenue, Porter said expenses are also expected to fall by about $764,000, reflecting the likes of reduced contracting and franchise costs.

In his presentation, he described the budget as “a careful balance of strategic investment, operational responsibility and long-term sustainability.”

Town councillors voted to pass the budget on Monday.

Councillor Tom Lakusta asked whether declining population could lead to lower property values and assessments, reducing tax revenue for the town, and if administration considered how that could affect Hay River’s ability to meet its financial obligations in the coming years.

Town manager Glenn Smith said the community and the Northwest Territories as a whole face an “uncertain path” economically. He told council a need for housing has limited the municipality to some degree, adding: “It’s within your control.”

Smith said Hay River is dedicating money to the likes of an economic development strategy to navigate the years ahead.

“At this point, you’re putting money into trying to protect the community for the future. So it’s a bit of an investment-based budget,” he said.

“I think in the next few years, you really need to have your handle on the pulse, on what’s happening in the community.”