Yellowknife (Nov 17/06) - Yellowknife ratepayers are facing their third tax increase in as many years with more to come over the next two years.

Citing legal costs over charges related to the deaths of two firefighters last year, the cost of hiring a third deputy fire chief (also related to the firefighter deaths), a weak water and sewage fund, and the slowing down of a once red-hot housing market, Dave Devana, director of corporate services, recommended city council adopt a 3.7 per cent property tax increase for 2007/2008.

"The overall city growth slowing down affects abilities for raising funds through taxes and building permits," Dave Devana told a council committee, Tuesday.

In his presentation to council, Devana outlined the other areas that he believes warrants the increase.

These include an additional $300,000 for a trust fund to upkeep training for firefighter commanders.

That amount came about in a recent agreement with the NWT Worker's Compensation Board to stay charges against the city in the deaths of firefighters Lt. Cyril Fyfe and Kevin Olson, March 17, 2005.

Devana also noted the city's $175,000 contribution to the 2008 Arctic Winter Games, the salary for the new deputy fire chief - also part of the WCB deal - and a whopping $534,000 salary increase for existing City Hall staff.

Last year, the city negotiated a three-year contract with staff that saw salary increases of three per cent this year, and four per cent next year.

Tax increases were recommended to continue in 2008 at 2.75 per cent and 2.25 per cent for 2009.

Last May, council hiked 2006/2007 property taxes by 2.47 per cent. Taxes were increased by 1.8 per cent the year before.

"We also have a concern regarding collection of grants in lieu of taxes for the Giant Mine site," Devana said.

He explained that much of the money to pay for staff salaries is generated through the city's general fund, which is supplied by property taxes. The fund is at $23,589,000 this year.

The general fund also sees 5.4 per cent of it go to servicing utilities, 3.6 per cent for fuel costs, and 2.1 per cent for grants and committees, among other costs.

Devana said other factors have also crept into administration's call for a tax increase.

The proposed sports fieldhouse, which council is still contemplating whether or not to build, has not been included into next year's budget. Nor has the city's proposed 9-1-1 emergency phone system.

He also pointed to disappointing numbers with at least one of the city's supposed money earners.

"With the water and sewer fund, we're having issues," Devana said. "Expenditures are higher then revenues. But, on the flip-side, the solid waste fund is doing well."

The $6.7 million water and sewer fund is expected to be $65,000 in the red this year.

The solid waste fund was a success this year due to a 26 per cent reduction in residential waste under the user pay system implemented over 2005 and this year. The city will publicly release a draft version of a rolling budget for 2007-2009 budget, Nov. 20. On December 4, a special council meeting will be held to hear views from the public budget.

On December 12 and 13, council will come together to review the 2007 budget. On Dec. 18, a special council meeting will take place to adopt the three-year budget.