Those who pay residential property taxes in Hay River will get a break in terms of their tax bill in 2025, but they will be paying a new fee to have their garbage picked up.
Monday night's standing committee of council meeting saw the proposed budget document released to councillors and featured a zero per cent residential property tax increase. Commercial and industrial property taxes are pegged to go up 2.9 per cent. The institutional tax rate would go up by 4.7 per cent with almost all of that expected to come from the GNWT.
Overall, the town plans to spend $16.42 million next year, a $1.2 million increase over 2024. In terms of revenue, the town expects to bring in around $18.67 million, around $1.12 million more than this year.
Property taxes will be the biggest source of revenue with nearly $7.7 million expected, along with $3.7 million in transfers from the GNWT for operations and water and sewer maintenance. There's also a $1 million grant from the Canada Mortgage and Housing Corporation's Housing Accelerator Fund to deal with grant applications to develop new housing in the town, but that money will be going right out the door as soon as the town receives it.
"It's an in-and-out fund," said Blair Porter, the town's director of corporate services.
In terms of expenses, the biggest spend will be on wages and benefits at around $5.75 million. Materials and supplies are another big one at around $4.9 million. That's increased by around $1 million thanks to the accelerator fund.
Once everything is paid, the town expects to have a surplus of around $2.25 million, all of which is slated to be put into the town's capital fund for 2026. If the budget passes, it will be split four ways: $1 million to the municipal infrastructure renewal fund, $750,000 to the landfill reserve, $350,000 to the utility infrastructure reserve fund and $100,000 to the recreation infrastructure reserve.
But while residential property taxes aren't going up, other things are, such as water and sewer rates, which are expected to go up by three per cent. There's also the introduction of what the town is calling a residential waste processing levy at a cost of $18 per month.
Porter said it's designed to be similar to a user-pay system.
"Those who have collection services pay a bit more," he said. "The aim is to improve cost transparency and promote better waste segregation, diversion (from the landfill) and recycling."
Porter said the fee would cover costs for residential garbage collection, recycling processing, yard waste, organics and oversized waste and that it be phased in over time.
Deputy Mayor Keith Dohey said residents probably won't like hearing they've getting a break on their taxes, but now paying a new fee.
"To me, sitting in a coffee shop, I've got a zero per cent tax increase, but I'm now paying $18 more per month," he said. "I got a tax increase, whether you want to call it a utility levy or whatever. Essentially, it's a wash ... because it's going to pay for this, but your taxes are still going into the capital (fund) for everything else. The question of 'what are my taxes paying for?' is still going to come up."
Dohey also noted that those living in the corridor are going to be charged $8 per month under this proposed new levy, but there's no garbage collection there.
Porter also warned that while the town isn't planning on increasing residential property taxes, the GNWT could increase the school tax levy and that could mean a tax hike for residents.
The town's 10-year capital plan is also still short by around $90 million, according to estimates from the town, or around $9 million per year. The proposed new water treatment plant is still $20 million from where it needs to be, as is phase two of the Sundog land development, though the Department of Infrastructure is stumping up $4.4 million for phase one. Repairs at town hall still need around $7.3 million, the dump is short by around $4.5 million and projects in the 553 are still in need of more than $8 million.
