August 15, 2003
Future of Nunavut's
capital rests on ratepayers' vote
Sept. 11 vote will make
or break Iqaluit's infrastructure plan
JANE
GEORGE
Iqaluit city officials will stress the need for better and cleaner water in
a major pitch to ratepayers that culminates in a crucial ratepayers-only vote
on Sept. 11.
That's the day when municipal taxpayers in Iqaluit will decide whether they
want to foot the bill for improvements to municipal water services.
The results of this vote will also show whether they support the city's larger
plan to carry out a $50 million package of infrastructure improvements within
Nunavut's capital city by 2008.
Promoting the "Mother and apple pie issues" of water is how Ian Fremantle,
the chief administrator of the City of Iqaluit, plans to sell the city's plan.
The September vote will ask ratepayers - that is, only those people who own
property and pay municipal taxes - if they want to pay for water-related improvements,
instead of asking them for a percentage-based contribution to all the projects.
"Everyone needs drinking water," Fremantle said. "Water is something
that transcends all boundaries. Everyone needs water."
The recent fire that devastated Joamie School exposed the city's need for more
water storage and greater water pressure, when firefighters ran out of water.
The $4 million that the city wants to borrow is part of a $50 million package
of work on roads, water and sewage systems and recreation facilities that it
wants to perform over the next five years.
Last December, the Government of Nunavut agreed to give Iqaluit $31 million
between 2003 and 2008 to help pay for these infrastructure projects.
But under this deal, the city has to contribute $19 million of its own money.
It only has $15 million available through reserves, taxes and other funds.
To borrow the $4 million needed to make up the shortfall, the city needs the
approval of ratepayers. The city would like to borrow this amount in 2004 and
pay back $476,000 each year for the next 15 years.
For every $1 the city contributes, the GN will pay an additional $3.63.
"It's a good deal," said John Hussey, the city's chief financial
officer. "We have to sell the idea that it will be good for Iqaluit."
The city plans to do this through an information campaign that will be launched
after second reading of the by-law to borrow money for municipal purposes, at
a council meeting scheduled for Aug. 26.
Ratepayers - that is, all individuals or businesses that pay taxes on one or
more properties - will then be given information on the vote. Most ratepayers
will have only one vote, even if they own several properties registered under
the same name.
If the vote's results don't go the way the city hopes, it can call another
vote in six months.
But if ratepayers don't give the go-ahead for the city to borrow this money,
the deal it has signed with the GN could be in jeopardy.
At a public meeting held last February in Iqaluit, some taxpayers said they
weren't interested in paying money out of their own pockets for improvements
that benefit even non-property owners.
And even with the scheme to borrow money, ratepayers will face paying about
$100 a year more on property taxes and municipal service bills in 2003 to help
finance improvements.
The challenge facing the city is to sell the idea - which is crucial to the
city's overall infrastructure and future development plans.
Ratepayers have also argued that people who haven't been paying their tax bills
should fork over what they owe before the city goes ahead and borrows any money.
At a special council meeting this week, municipal councilors decided not to
defer the planned Sept. 15 auction sale of properties owing back-taxes.
In a letter to the city dated Aug. 5, Paul Kaludjak, acting president of Nunavut
Tunngavik, asked for the tax auction be postponed "until a multi-disciplinary
group of representatives from all levels of government and community" would
look at the issues involved.
At the same special meeting, councilors gave first reading to a municipal by-law
that says a total of $4,050,000 will be spent on a variety of mainly water-related
projects:
- $1 million for the water main between the Airport and federal roads;
- $890,000 for the Lower Base water and sewage systems;
- $890,000 for the extension of water mains on the Federal Road;
- $400,000 on upgrading of water and sewer mains;
- $359,000 on the storage of raw sewage;
- $297,000 on a storage tank for new treated water;
- $109,000 on an upgrade of the water and sewer on Uivvaq Loop;
- $5,000 on the water treatment plant upgrade.
Of the total amount the city wants to borrow, $100,0000 is earmarked for walking
trails. This project will be entirely paid for by borrowed money.
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