SOMBA K'E/YELLOWKNIFE - The bylaw to increase property taxes by 5.7 per cent in 2010 was passed by city council on Tuesday night.

City councillors Amanda Mallon, Mark Heyck, Lydia Bardak, Sheila Montgomery, Cory Vanthuyne, and Paul Falvo voted in favour of the bylaw. Coun. David Wind voted against, and Coun. Bob Brooks was absent for the vote.

Administration had proposed an increase of 5.7 per cent even though the actual numbers for the city's assessment base came in higher than expected by about $10 million. Because of this unexpected figure, the city would only need to raise property taxes by 4.62 per cent in 2010 in order to make ends meet.

The difference between the two rates is about $16 per household.

Councillors Wind and Falvo both supported the minimum increase and Falvo moved to amend the bylaw as such, but the motion was defeated. Falvo said he would prefer to see the extra money go toward lowering property taxes for the year.

"I think this is a situation of pay now, or pay later," Falvo said, before voting in favour of the original bylaw.

Vanthuyne said even though he voted in favour of the 5.7 per cent increase, it's not a number he's happy with. He did, however, say he believed saving the extra assessment base money for the 2011 budget would give council a good starting point to get property taxes down next year.

"We have an incredible tax hike that we're facing next year," he said referring to the projected increase of 7.21 per cent in 2011. "That's quite a mountain to climb as it relates to administration and council trying to get that down."

By adding the extra $10 million from the assessment base to next year's budget, the city could start deliberating at a 6.09 per cent increase rather than the initially proposed 7.21 per cent, according to administration.