SOMBA K'E/YELLOWKNIFE - City administration told city council on Monday it plans to spend $132.3 million on building projects over the next 10 years, including $2 million on renovations to city hall, subject to council approving the projects as they come up.

The major chunks of that number are $34 million for road replacement, $25 million for a new water treatment plant, $21 million for a new library in 2017, and $29.3 million for corrugated metal pipe replacement.

The capital fund, which will pay for those projects, is made up of about 70.2 per cent money from outside sources, such as the federal and territorial government, and 29.8 per cent from Yellowknife taxpayers.

"New facilities, parks, and trails have costs that are going to increase our budget," said Carl Bird, director of corporate services, during the Priorities, Policies and Budget Committee meeting on Monday, in which Bird gave a presentation on the budget outlook for 2011.

The projected 2011 general fund budget is $29,763,000- up $1.4 million from projections made last year.

Administration didn't mention the overall total budget including capital costs, which was forecasted last December as $55.2 million for 2011. Of the general fund, 61.4 per cent goes to salaries and benefits. Bird said one of the major cost drivers for the budget is salary increases for existing staff, which includes negotiated increases with the Union of Northern Workers as well as annual raises for staff who do their job well. The city's current three-year contract with the Union of Northern Workers ends this December.

The cost to the city for services - which includes fuel and facility maintenance - is also on the rise, according to Bird.

"The overall main cost of services increased by about 5.5 per cent over the previous year. This is less than the increase in 2009, which was 8 per cent," said Bird.

Bird said a major factor in lost revenues is the loss of much of the mining sector. Mines and quarries represent only 1 per cent of the tax base, according to Bird - down from 5.97 per cent in 2004. Bird said residential and industrial growth has not made up for the loss of that revenue.

According to Jeffrey Humble, the director of planning and lands, interest has been picking up in Niven Phase 7 and the Engle Business District, which could provide some additional revenue for the city.

Humble said 10 out of 30 lots in Niven Phase 7 have been sold, and though only two of the larger lots in Engle Business District have been sold, there has been an increase in inquiries about the land.

The projected tax increase was still 7.21 per cent, but both administration and the elected officials are hoping to bring that cost down.

"We anticipate we will get it below that before we bring it back to council in November," said Bird.

Mayor Gord Van Tighem said that was a "good idea."

The public is invited to send in their input for the budget by contacting city hall or going to the city website, today until June 1.