SOMBA K'E/YELLOWKNIFE - A potential property tax increase of 7.21 per cent in 2011 has the president of Yellowknife's Chamber of Commerce concerned with the city's budgeting philosophy.

The city has gone into the budget process with the intention of continuing the current level of programs and services, according to Patrick Doyle, the president of the Yellowknife Chamber of Commerce. Doyle said that is where the problem lies.

"They're increasing taxes every year just to keep the current level of services and programs," said Doyle.

"Like any responsible government, they need to really sit down a reassess what programs can be reduced or maybe even cut if it's something that's no longer needed," said Doyle.

He said increasing taxes to maintain programs and services is "not sustainable" and it definitely concerns him.

Mayor Gord Van Tighem said the estimated 7.21 per cent tax increase is based on maintaining the current "status quo" of programs and services.

"If you maintain the same services with inflation, employment agreements, fluctuating fuel costs and facility costs - if nothing changes, costs go up," said Van Tighem.

"What needs to be decided is how can we do things differently. Are there things that we're doing now that we need not do into the future? Programs that are no longer popular?"

Van Tighem said city administration and council will be considering those questions in the time leading up to the creation of the budget this fall.

"I'd be surprised if (7.21 per cent is) still the number when we get to the budget," he said.

Van Tighem said the city's budget has doubled over the past decade and the property taxes have only increased by around 12 per cent, because the city has been proficient in acquiring money from outside sources, through things such as government grants.

He said there will be public meetings before the budget is written up that will allow the public to bounce ideas off administration and council.