Yellowknife (Dec 31/03) - Yellowknife residents may soon dig a little deeper into their pockets to live here, according to the city's preliminary budget for 2004.

City Hall is saying a 1.05 per cent property tax increase is necessary to offset higher costs.

Residents will also pay five per cent more for water -- the first increase since 1995.

This is the first time the property tax rate has changed since a 3.7 per cent increase in 1999. But that was followed by a two per cent decrease in 2000.

"Our expenditures are increasing at a greater rate than our increases in revenue," Robert Charpentier, director of finance said.

The city's 2004 general operating fund will see an approximate $1.6 million increase in operating expenditures compared to 2003, he said.

"The bottom line is a $161,000 shortfall which equates into a 1.05 per cent tax revenue increase," Charpentier explained.

One reason for the change in expenditures is the increase in City Hall staff, he says.

Four permanent positions will be hired: a systems analyst, a senior constable, an arena maintainer for the Multiplex, and a manager for the city's vehicles.

Coun. Alan Woytuik has concerns about the imminent increases.

"I question them but have yet to meet with administration," Woytuik said.

Another councillor wasn't as worried.

The increases were not unexpected, Coun. Wendy Bisaro said, but she has not yet seen the budget document to see "where we could cut something to do away with an increase."

That look may not change things.

"My guess is that the water rate is here to stay, but we'll have to see about the tax increase," Bisaro said.

A public meeting will be held Jan. 5 at 7 p.m. to discuss the budget.

factbox:

budget facts:

City Hall will see an increase in its current spending, resulting in a budget shortfall of $161,000.

Most prominent increases are for extra staff or increases due through contract costs.

The following lists some of the projected costs of major departments in City Hall:

General government staffing: $175,000;

Community services staffing: $237,000;

Public safety and development staffing: $164,000;

Public works and engineering staffing: $125,000;

Public transit: $15,000 transit contract increase;

Street lighting: $13,000 increase in lights;

Street lighting: $12,000 power consumption;

Fire division training: $43,000;

Municipal enforcement staff: $54,000;

Information technology staffing: $41,000;

Information technology operations costs: $106,000;

Budget:

Total expenditures for 2003: $36.7 million;

Total expenditures for 2004: $40.3 million.

Total revenue for 2003: $38.1 million;

Total revenue for 2004: $40.27 million.

-- Dorothy Westerman