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INUVIK - Mayor Derek Lindsay said the town's proposed 2009 capital budget will offer a much-needed boost to the local economy.

"It's going to create employment in the community," said Lindsay of the more than $7.6 million of expenditures for the town.

The budget was presented at council's committee of the whole meeting Monday night for public discussion.

Lindsay was quick to point out most of the money came from government grants, adding that property taxes in the town will not be increasing this year. He said in 2008 the town had an operational and a capital budget surplus amounting to more than $2 million combined.

Some of the budget's big ticket items include a utilidor replacement project in the Tuma Crescent area. Paving is also being planned for Spruce Hill Drive and Camsell Place. More than $1.2 million will be spent on constructing a building envelope for the Midnight Sun Recreation Complex.

A new wheelchair-accessible stage totalling $750,000 is proposed for the community hall and $400,000 is earmarked for a new fire truck.

Council was scheduled to vote on whether to accept the budget at its regular meeting on Wednesday, after Inuvik Drum goes to press. However, most councillors who attended Monday's meeting supported the budget.

Councillor Terry Halifax went through each expenditure with council, and took issue with a number of budget items.

He questioned why the town would spend $40,000 to replace the fire chief's current vehicle which he said does the job. He also raised concern over the town forking out $100,000 for the construction of a cold storage unit, which would be used mainly to store firefighting equipment.

After the meeting Halifax said the budget should be looked at carefully because of the amount of money at stake.

Lindsay agreed, saying the town did its best to be prudent while being as generous as possible.

"We're doing our due diligence as far as keeping costs down and doing the best we can for the town," said Lindsay.