SOMBA K'E/YELLOWKNIFE - An early draft of the city's 10-year plan predicted property taxes may need to increase by 7.21 per cent next year, in order to keep up with the size of the budget.

During the budget sessions last fall, 2011's taxes were predicted to need a raise of 6.95 per cent.

According to Carl Bird, director of corporate services for the city, the amount of revenue the city needs to bring in hasn't actually risen.

"City council asked us to reduce the tax increase this year from 5.95 and it went to 5.7," said Bird.

"That doesn't change our expenditures or revenue requirements for 2011. Because we didn't increase revenues enough in 2010, we have to increase them next year to make up for that."

The draft was tabled for information at the city's Priorities, Policies and Budget Committee meeting on Monday.

City councillor David Wind told Yellowknifer he'd like to see the budget increase no more than the rate of inflation each year, and said that may keep down expenses.

"My feeling is that the administration probably needs to examine what it is that they're proposing to increase the spending for, and see what is absolutely necessary," said Wind.

Most city councillors Yellowknifer spoke with said they did not like the idea of a tax raise of that magnitude, but were happy the information is available now so they can ponder ways to avoid the tax spike.

"It's really fortunate that we have the ability to start reviewing that and start talking about the budget now," said Coun. Lydia Bardak.

Coun. Mark Heyck said he feels there are many areas in the budget where the city will be able to reduce expenditures.

"I think there are some areas that we can stand to reduce expenditures," said Coun. Mark Heyck.

"If land sales come in higher than forecast and therefore revenue collected from property taxes is higher than it is, there will be an opportunity for that number to come down," said Heyck.

Coun. Cory Vanthuyne said he'd support a small increase each year, but definitely not a raise of 7.21 per cent.

Coun. Bob Brooks said he considered it too early to start talking about the budget and the figure of 7.21 per cent may change by the time the actual budget talks begin this fall. He is also hoping for a much lower number when those talks come around.

"I try for a zero per cent increase. That's my goal leading into these budget discussions," said Brooks.