THEBACHA/FORT SMITH - Taxes in Fort Smith will jump by 10 per cent in 2010.

Town council unanimously approved the coming year's municipal operating budget, including the tax hike, on Dec. 15.

In a news release, Mayor Janie Hobart and council noted there had not been a tax increase in Fort Smith for about 10 years.

However, council pointed out operating costs rose in that time and a swimming pool and recreation centre opened, leaving council with "no option" but to increase taxes by the 10 per cent to cover resulting shortfalls.

The tax hike will raise an estimated $177,000 in extra revenue.

The average household will pay approximately $150 to $200 more a year.

"It was a difficult decision to balance the requirements to operate the municipality with fiscal prudence," stated the release, which also noted the recession has cut the town's investment income by more than $100,000.

The budget foresees general operating revenues of $6,415,656 and the same amount in expenses.

When contacted by News/North, Hobart said councils of the past decade had a lofty goal in not raising taxes.

"But you have to be realistic that costs are going up every year," she said.

Hobart declined to blame the current need for a 10 per cent increase on the previous councils' decisions not to raise taxes.

"What's in the past is in the past," she said, adding the current council has to deal with the realities of today.

Hobart said the municipal government wants to maintain services for town residents and extend the lifespan of aging infrastructure as much as possible.

The mayor said most town residents recognize the necessity to raise taxes.

The mil rates will be set in January.

The town has more than $7 million in reserves, but those funds are restricted to infrastructure projects and can't be used for operating expenses.

That money has been committed for such things as paving streets and a track, water and sewer upgrades, equipment replacement, computers and recreation infrastructure.