City council approved a special $1.3 million tax levy to support capital projects for the 2015 Canada Winter Games.
The levy will result in an approximately two per cent tax increase, putting the final tax increase for 2011 at 4.2 per cent. For an average $200,000 home, the increase equals approximately $64.61 per year.
Coun. Shari Green said the goal of the levy is to pay for the projects needed to host the games by 2015, rather than borrowing the money and paying more. Green said after visiting Halifax for the 2011 Canada Winter Games, it's clear the investment is worth it.
"Halifax budgeted $1 million in ticket sales. They met that after the week one," Green said. "I believe $125 million was the latest projection of the economic benefits to the Halifax region. It's a little bit of pain now... but it's a long-term win for the community."
With the approval of the Canada Winter Games levy, the total tax requisition for 2011 will be $76.4 million --up $3 million from 2010.
City finance manager Sandra Stibrany said the city will create a Canada Winter Games reserve fund, through a bylaw to be developed later, which will set out specific uses for the money collected by the games levy.
The majority of the infrastructure projects --including upgrading or replacing the Kin 1 arena at the Kin Centre -- will be done in 2012 and 2013. The majority of the funds will come from the city's capital reserve fund, then be replaced over time from the Canada Winter Games reserve fund.
"It definitely is a bridge-financing situation," she said.
The total projected cost of capital projects related to the games is $17.4 million, Stibrany said. The provincial and federal governments have each agreed to contribute $3 million, and the city will be looking to other municipalities, businesses and government grants for additional funding.
With the approval of the Canada Games levy, the city will still be looking for another $773,000 per year from 2012 to 2015 either from taxpayers or other sources, she explained.
Councillors Dave Wilbur and Brian Skakun opposed the levy, saying the increase is too much for taxpayers this year. Wilbur proposed an amendment which would have limited the Canada Winter Games levy to a 0.5 per cent tax increase this year -- approximately $300,000.
"We're still recovering from a recession. It seems to me we'll be in a better position to pick up the slack in future years," Wilbur said. "Although I agree with the phasing in approach... I think its outstripping the ability of the taxpayers to pay."
Skakun said the increase will be a burden on low-income and fixed-income families.
"There is no doubt that the Canada Winter Games are going to benefit the community," he said. "Coun. Green talked about short-term pain, long-term gain. With all due respect, there will be pain. My concern is some of the people can't afford it."
Reducing the levy in 2011 would leave about $1 million which would need to be made up in future years, coun. Cameron Stolz said.
"All we're doing is compounding the cost in future years," Stolz said. "I don't see how its prudent to delay it."
In September Prince George was named the host city of the 2015 Canada Winter Games. The two-week sporting event is anticipated to draw 3,700 athletes and 1,300 officials, media, support staff and spectators.
