Mike W. Bryant
Northern News Services

Yellowknife (Nov 18/05) - City Hall offered a sneak peek at its 2006 draft budget Monday- one that forecasts a 1.9 per cent property tax increase and a two per cent hike on water bills.

GENERAL FUND: Salaries and benefits - $12.7 million Utilities - $1.2 million Fuel costs - $860,000 Contractual obligations - $2.7 million Insurance - $897,000 Grants and committees - $490,000 Other -$3.6 million Proposed capital fund - $11.2 million Total spending - $22,441,000

The latest tax increase proposal comes at the second phase of the city's rolling three-year budget that recommends an increase each year. City council increased property taxes by 1.8 per cent this year, after chipping away at administration's recommended rate of 2.85 per cent last December.

When unveiled last year, the draft budget predicted the city would need to raise property taxes by nearly three per cent a year to 2007 to compensate for $1 million in taxes lost to the closure of Giant and Con mines.

A development boom has improved the city's outlook.

The new federal building on Franklin Avenue 24 lots sold in the Kam Lake industrial park, and development in the Niven Lake subdivision will boost the city's assessment roll by $322,000 next year.

One proposal that is certain to raise eyebrows is the two per cent increase on water bills. The 2005 budget document projects the $4.7 million water and sewer fund will be $90,000 in the red next year.

"This fund is not performing very well," said Dave Devana, director of corporate services. "We haven't increased water rates since 1995."

The city charges users $11.92 per 4,550 litres most of the year, and a lesser rate of $5.96 per 1,000 litres during June, July and August to encourage residents to water their lawns.

Devana told council a full draft document of the 2006 budget will be made public Nov. 21.

Council typically spends about a month debating the budget before passing it in mid-December or early January.

Mayor Gord Van Tighem warned council to hold off debate until the official budget draft is presented, but Coun. Alan Woytuik said he felt the briefing was incomplete because it made no mention of a study for the Multiplex site.

He said it would be a mistake not do one next year, considering that council is considering moving a skateboard park there and building a multi-sport fieldhouse. "It's high time we had a plan for the site," said Woytuik.