Yellowknife (Dec 13/04) - City councillor Doug Witty doesn't expect the sort of reaction that occurred the last time a large tax increase was proposed.

However, he hopes tonight's special meeting is well attended nonetheless.

In 1999, ratepayers threatened a revolt after council voted to increase property taxes by 3.7 per cent.

At a meeting held that summer, residents stormed City Hall, crying out that councillors were spending money like "drunken sailors" -- one even going as far as saying the decision was "almost to the point of being evil."

This time around, the city is proposing a tax increase of 2.85 per cent for next year, with similar increases over the next two years.

"The potential for a three-year running tax increase is not pretty," said Witty, who is set to vote on his second budget as a city councillor.

"I'd like to hear what people have to say, but I honestly haven't heard that great an outcry."

Witty said council is faced with the daunting task of trying to meet demands for increased services, while attempting to placate those who are adamantly opposed to any tax hike.

He said next year's tax increase may have to go even deeper if council decides to include a wheelchair-accessible transit system in the budget.

Council is currently pondering whether to include $80,000 to have the transit system in place by July 1, 2005.

"It's not that I don't want to do it, it's a matter of what can you do and what can you afford to do," said Witty. "We don't have the participation of the territorial government like they do in Whitehorse.

"Some councillors want to go ahead and (include the transit system) anyway. In my mind, you've taken the negotiating power out of approaching the territorial government if you just go ahead and do it on your own."

Unlike Witty, Coun. Bob Brooks was sitting on council when the near tax revolt broke out in 1999, but he hasn't heard any major outcry this time either.

Regardless, he believes council can still find a way to trim costs and avoid a big tax hike, although he hasn't decided where it would be easiest to make cuts yet.

"I certainly expect we'll be able to find some savings other than what administration was asking for," said Brooks.

"It's too premature to say where, though."

There are several potential areas where councillors may be taking a hard look.

Administration is asking for $363,000 for new computers and improving the city's information technology system, an area that Witty calls a "black hole," because unless one is a computer expert, it's difficult to grasp what is absolutely essential and what is not.

Last year, council budgeted $463,000 for information technology, but the bill has since climbed to $870,000. Included on this wish list is a $25,000 request for mobile hand-held computer devices, and $22,000 to purchase a sound system for City Hall's lower boardroom.

The city wants $721,000 to fund community service-based capital projects, which includes $125,000 to develop trails on Twin Pine Hill and $30,000 to build a Trans-Canada Trail pavilion to honour the 900 Yellowknifers who donated money to build the trail.

Last year, council budgeted $590,000 for community service projects, but have so far spent $3.96 million. For public works, administration is asking for just under $2 million. Most of that would go towards paving roads and sidewalks, but also includes $300,000 to purchase a new backhoe.

Last year's budget for public works projects totalled just over $2.84 million, but the city has spent $140,000 less so far. For staffing, the city proposes that council should add 2.33 positions to go along with the 177.7 jobs already on the payroll.

The newest additions would include an arena maintainer for the Multiplex and a financial operations supervisor. The city proposes to spend $14 million on salaries and benefits this year -- up $700,000 from last year.

Coun. Wendy Bisaro said she thinks some people are resigned to the idea that a tax increase is coming. She said there doesn't appear to be much reaction to it either way.

"I haven't had people phoning up and screaming at me, or not screaming at me, or whatever," said Bisaro. "A couple people that I've talked to said, 'that's okay, we kind of expected it.'"

Tonight's special budget meeting at City Hall begins at 6 p.m.