SOMBA K'E/YELLOWKNIFE - Yellowknife property taxes will increase for the seventh year in the row if city council passes the 2011 draft budget that was released to the public Monday.

City administration is recommending a 3.99 per cent increase, although the original draft budget called for a 3.75 per cent hike.

Carl Bird, director of corporate services for the city, told the Priorities, Policies and Budget Committee that the additional .24 per cent increase is due to a 28 per cent rate hike by the Workers' Safety and Compensation Commission.

Although higher than what's in the original draft budget, the projected 3.99 per cent increase is down from city administration's May estimate of 6.05 per cent and last year's projected 7.2 per cent for 2011.

"The work we've done on addressing our cost controls and trying to identify new revenue items or additional revenue options means that this budget as drafted presents a (3.99) per cent increase," Bird said.

The average homeowner will incur an increase of $61 in municipal taxes per year, he said.

The total assessment base for taxable properties in the city is about $2 billion.

The projected tax increase is needed to make up $805,000 to balance the 2011 general fund, which has a net revenue increase of $640,200 and a net increase in expenditures of $1.445 million over last year.

This year's draft budget projects respective property tax increases of 2.7 per cent and 2.69 per cent for 2012 and 2013.

Inflation costs for 2011 include an increase in pool maintenance fees, salaries and operations and maintenance to operate the Fieldhouse and operations and maintenance of the Curling Club.

City administration is recommending a transfer of $1.436 million to the capital fund from the general fund. The capital fund is used to fund building projects and procurements. The general fund - funded primarily through taxation and user fees - pays for city operations, maintenance, wages and benefits.

Bird pointed out the transfer is 6.5 per cent of revenues, which is less than the 10 per cent the budget policy recommends the city transfer.

"This is in order to keep taxes at a lower level," he said.

He said it is also crucial that the city sell industrial lots in the Engle Business District to increase the future tax base of the city.

He said there will be marketing done by the city's planning and lands department to help sell the land.

In the draft budget, the Land Development Fund includes the sale of six lots in Niven Lake Phase VII and 10 acres in the Engle Business District, said Bird.

"We think that's a realistic projection."

To pull the Solid Waste Management Fund out of a forecasted $120,000 annual deficit, administration is recommending a $1 increase in the single family unit solid waste levy, taking it to $12 from $11 charged onto water bills.

The increase concerned city councillor Paul Falvo, who sits on the Solid Waste Management Committee, because the committee plans to recommend to council the reduction of the number of garbage bags a homeowner can put out without extra charge to two from three.

"It sounds like it could be hitting people with a double whammy to reduce the number of bags and pay more money for it," he said.

Coun. Amanda Mallon was also concerned about the increases, which will also impact tipping fees.

She said it's important that council consider those "extra little bits and pieces that we're adding on, looking at the overall implications of (them) and how it rolls out to the average person."

The city is accepting input on the 2011 draft budget, which is available on the city's website. A public meeting is being held Dec. 6 at city hall.

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