Here’s what Yellowknife is proposing in its draft 2027 budget

City of Yellowknife staff say affordability – a hot topic on the election campaign trail – was a key consideration when developing the municipality’s proposed 2027 budget.

The budget “seeks to strike a careful balance between continuing to prepare Yellowknife for growth and opportunity while also ensuring we live within our means and remain mindful of affordability for residents,” Kerry Thistle, the city’s director of economic opportunities and investment, told councillors at City Hall on Thursday.

Thistle noted the budget was developed during a transition period – Thursday was the new mayor and council’s first public meeting.

She said the budget is “intentionally more foundational in nature than future budgets may be” and aims to keep up momentum on existing work while being able to accommodate the new council’s impending priorities.

The draft 2027 budget projects $167.5 million in spending, including $55 million on capital projects, and $145.4 million in revenues, with $22.1 million in internal transfers and other adjustments to address the funding shortfall. Unlike other levels of government, the city is required to deliver a balanced budget every year.

The budget proposes a property tax increase of 5.25 percent. The city has a property tax calculator on its website for residential properties.

The draft budget will now be scrutinized by the new mayor and council, who must decide what spending makes it into the budget, what gets cut, and how much property tax residents must pay.

Spending highlights

Kavi Pandoo, the city’s director of finance, said the budget was developed around “difficult choices” related to taxes, user fees, service levels, reserves and capital investments.

“The overall objective is not simply to balance one year’s budget, it is to maintain reliable service, respond to immediate community needs and ensure that the city remains financially sustainable over the years ahead,” he said.

Among proposed spending in the budget, Pandoo highlighted:

• $16 million for the replacement of Lift Station #1;
• $7.2 million to replace water and sewer infrastructure;
• $5 million for raw water supply infrastructure upgrades;
• a $4 million paving program;
• $1.5 million for technology renewal and implementation of an IT audit;
• $750,000 for design standards, bylaw updates and downtown traffic management plans;
• $504,000 for training initiatives;
• $404,000 for advancing the city’s acquisition of commissioner’s land;
• $175,000 for a downtown cleanup program; and
• $107,000 for reconciliation and Indigenous relations.

Pandoo said the city received 23 project proposals from residents and organizations for inclusion the 2027 budget.

Those that made it into the draft budget, he said, include a bike storage initiative, extension and improvement of the Frame Lake trail, maintenance of the Niven Lake trail, Lakeview Cemetery improvements, and a waste-to-energy pilot project.

He noted the budget includes $1.6 million to begin implementing a recently passed transportation plan, which will support some of those projects.

Proposals city staff recommended be considered in future budgets include Frame Lake and Jackfish signage, a lighted pedestrian crossing in Kam Lake, a dog park, tennis court resurfacing, and a splash pad.

On the revenue side, grants and transfers from other levels of government are projected to account for 40 percent of the city’s revenue, followed by property tax at 31 percent, user fees and charges at 24 percent, investment income at three percent, and land sales at two percent.

Pandoo said challenges include increasing costs, ageing infrastructure and a housing shortage. Still, he said, the city is entering 2027 “from a position of opportunity, not simply one of challenge.”

He highlighted advancement of a new community plan and land development opportunities, as well as the creation of a municipal major projects and opportunities secretariat, among positive work completed this year.

“The sky is not falling yet and we have a collective responsibility to keep it that way,” Pandoo said, adding the city is heavily reliant on the federal government.

Impacts of federal investment

This is Yellowknife’s first budget since the federal government announced significant planned investments in Arctic defence and major projects in the North.

Pandoo said the city has already secured close to $15 million in federal funding.

While all federal funding commitments may not flow directly to the municipality, he said such investments could contribute to a stronger revenue base and long-term growth in Yellowknife.

Pandoo said other proposed commitments in the latest federal budget could have implications for Yellowknife. Those include:

• extended mineral exploration tax credits;
• renewal of the Reaching Home funding program for 10 years;
• $1.6 billion over 10 years to improve energy reliability in the North;
• $1.5 billion over nine years for community recreational facilities across Canada; and
• $100 million nationally over three years to help municipalities streamline housing development approvals, including through e-permitting and the adoption of AI tools.

Pandoo cautioned that not every opportunity should be pursued, noting federal funding could require some level of municipal contribution and new infrastructure comes with operation, maitainance and replacement costs.

Residents can submit feedback and questions about the draft budget to city council. A meeting for the public to provide input is scheduled for November 30 at City Hall.

“Consultation does not necessarily mean everyone gets the outcome they want. It means the decision-making process is open, informed and transparent,” Pandoo said.

Councillors are set to deliberate the budget from December 7-10 and approve a final budget on December 16.