Yellowknife (May 26/06) - City council voted 6-1 in favour of a 2.47 per cent property tax increase on Tuesday.

Cited reasons for the increase included both the expense of maintaining city services, and funds needed to provide new programs and facilities.

The budget calls for $41.5 million in total spending. The city will collect about $16.7 million in taxes for municipal purposes.

"Yellowknife residents are satisfied with the services provided by the city," said Coun. Kevin O'Reilly.

"The two gold mines are a lost tax base and (council needs) to raise taxes to provide upkeep and care of the city."

The closures of Con and Giant mines caused the city to lose a great deal of tax revenue.

Despite that, not all council members agreed that raising municipal taxes is a good idea.

Coun. Doug Witty voted against the motion. Coun. Dave McCann was not present at the meeting and did not vote on the motion.

Witty said the increase is unnecessary, as there are no plans to increase services to the public - only to maintain the level of services already offered.

"This is a tax increase that will continue to haunt us," said Witty.

Coun. Wendy Bisaro said a tax increase is warranted in order to maintain services to the city, which has a steadily-growing population.

"Residential taxes are a lot less than taxes on business, especially those mines.

"It simply doesn't make up the shortfall (from the loss of mine taxes)," she said.

Coun. Mark Heyck agreed.

"We need the tax increase to cover costs," he said.

Councillors Blake Lyons, Bob Brooks and Alan Woytuik echoed those sentiments.

Last year, taxes increased by 2.4 per cent.

Council also plans to raise property taxes another 2.5 per cent next year.