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SOMBA K'E/YELLOWKNIFE - Next Monday night, Yellowknife's mayor, councillors and upper administration members will meet with Yellowknifers to discuss the many proposals of the 2009 draft budget - including a 4.75 property tax increase.

The suggested increase follows a steady string of tax boosts over the past years, but, if passed, will be the first to breach the four per cent mark.

If approved, the property tax increase would work out to about $34 for every $100,000 of taxable assessment, or $71 on average per household per year, according Carl Bird, director of corporate services.

There are many major cost-drivers behind the proposal, he added.

"The biggest one is the increase in the salaries for all city employees based on the negotiated settlements that we had with our unions," he said.

While the four per cent salary raise is only set for union members - excluding firefighters and municipal enforcement members - Bird said whenever pay is raised for union positions, non-union members generally get increases as well.

City spending on salaries and benefits has risen to a recommended $18.3 million from $14 million in 2005.

The city is also looking at creating five new positions for next year.

Bird added other cost drivers behind the proposed increase include rising costs in power and heating and a decline in the mining sector.

"The increased growth in the commercial and residential tax base is being offset by much lower growth - in fact some dropping - in the mining sector," he said.

The Yellowknife Chamber of Commerce stated in a letter released on Monday that raising taxes will only continue to drive businesses away.

"The city increasing its taxes each of the last five years is making it less attractive to people looking to start new businesses in Yellowknife," chamber president Jon Jaque stated in the letter.

"We feel the city should do what businesses are doing already: look at being more efficient, cost-effective and review all departments to cut down on waste or unnecessary staff or spending," the letter stated.

But a tax increase isn't the only thing in the budget.

Also up are a five per cent water and sewer rate increase for both 2009 and 2010 and a five per cent Solid Waste Management user fee increase for both 2009 and 2010.

The city has also scheduled the continuation of two major projects: $1,695,000 for road and paving rehabilitation programs and $2.5 million for its water and sewer infrastructure replacement project, which began in 1984.

The city has also included a $115,000 proposal for an engineering study in efforts to initiate the paving program on Ndilo's roads - but the study isn't scheduled until 2010. Areas set for paving next year include a stretch on Old Airport Road, 50 Street and the first phase of Kam Lake Road re-paving.

There is nothing in next year's budget for increased spending on snow removal.

Yellowknifers are invited to make presentations regarding the budget at a special council meeting Monday night at 7 p.m and draft budgets are available online or at city hall.

Another review will take place on Dec. 9 and Dec. 10. City administration intends to adopt the budget on Dec. 15.