Yellowknife (May 20/05) - It may not be much, but city councillor Dave McCann says he will take whatever tax cut he can.

City Hall informed council Monday that they can make do with a property tax increase of 1.8 per cent this year - slightly lower than the 2.07 per cent anticipated when the budget passed last December.

Administration believes 1.8 per cent will be enough to generate the $16,039,000 needed to break even for 2005. The new numbers are based on a revision of the 2004 assessment roll.

Nonetheless, McCann said he believes the city can do even better.

"You hear arguments from some people that all the improvements have been made, we can't make any more," said McCann.

"That's an absolute fallacy. It's nonsense."

Corporate services director Dave Devana said the city's growing population counterbalanced the closure of big tax contributors Giant and Con Mines.

"If we didn't have the growth offsetting the reductions over at Giant and Con, these tax increases would be much higher, actually," said Devana.

"The growth is part of it. Hopefully that will continue on for a couple more years while we absorb the reductions in the assessment base at the mines."

Reduced tax hikes are not only on tap for this year, but the next two as well. Last fall's draft budget estimates called for increases of almost six per cent over 2006 and 2007, but Devana said residents will likely see a 1.4 per cent hike next year and 1.8 the year after that.

Coun. Wendy Bisaro, who did not support efforts to shave this year's tax hike because it would've meant program cuts and the loss of the city's recycling co-ordinator, said she won't argue against a lower tax increase now.

The recycling co-ordinator is long gone, and any attempts to recover more revenue for the city's solid waste fund will have to wait until the next budget.

"We fought the fight and lost," said Bisaro.

"To open that can of worms at this point would be just really messy and ugly."