SOMBA K'E/YELLOWKNIFE - The city's estimate of a 7.21 per cent property tax increase in 2011 might go down to 6.09 per cent, thanks to an unforeseen windfall, according to Carl Bird, the city's director of corporate services.

Last December, city administration proposed a property tax increase of 5.9 per cent for 2010, which city council whittled down to 5.7 per cent in order to balance the 2010 budget. Now property assessments have been made, the actual property tax income is higher than originally projected. This means that a property tax increase of 4.62 per cent is now the minimum to balance the 2010 budget.

Bird said a $10 million dollar increase in the assessment base for NorthwesTel's property was what caused the numbers to change.

"We're usually closer," he said.

The total assessment base for taxable properties in the city is about $2 billion.

Even though city council could choose to only increase taxes this year by the minimum amount of 4.62 per cent, administration is recommending it stick with the increase of 5.7 per cent in order to create a $218,000 surplus, which would then be used towards lowering next year's 7.2 per cent income to 6.09.

A vote on the matter is expected next Monday.

City councillor Bob Brooks says the fluctuation in numbers doesn't bother him, and in terms of projections it's business as usual.

"It doesn't worry me at all because they fluctuate on a regular basis because we're dealing with unknowns all the time," he said.

"Projections are just that, best guesses at the time, with the information that you have at the time."

Brooks said making these estimates gives the city and idea of where they're heading, and if the outcome looks undesirable, like major tax hikes, it can look at ways to make changes.

He said by making these estimates available to the public, council can provide input on what it thinks the city's priorities should be. Brooks said that this change in priorities could end up meaning a change in taxes.

Coun. Mark Heyk agrees, but said that at a time of property tax increases, the city has to find some way to tighten their belts on wish-list items.

"At a time when we are looking at some fairly hefty property tax increases, it's important that councillor's temper their expectations over the next couple of years," he said.

"We do tend to go into the budget process with things we'd like to see included and I think heading into next year's budget we'll need to be much more vigilant in terms of looking for areas that could use some reductions instead of increases," Brooks added.

He said when the public has the opportunity to make presentations on the proposed budget, groups and individuals are often looking for more support from the city.

"There's very rarely people coming forward and saying, here's something I think we should do without."