SOMBA K'E/YELLOWKNIFE - City councillor Bob Brooks wants to lower taxes by transferring surplus money from projects in the 2010 budget to the 2011 budget.

He was given hope last month when the city received $980,000 in funding from the federal government for the revitalization of Old Airport Road. The funding means the city will put only $110,000 towards the project, rather than the $500,000 it had budgeted, leaving $390,000 to be carried over to the 2011 budget.

"I'm hoping we can find some variance money because of things that didn't get spent this year or because of areas where we've saved. I'm looking to transfer that overage into next year's budget, which should save us some tax money," he said.

Jeff Humble, director of planning and development for the city, said the $390,000 will remain in the budget to finish Phase II of the revitalization project, which he said should be completed in the summer of 2011.

Christine Siu, manager of budgeting and taxation, said because the $390,000 will remain in the capital fund, which is funded by grants and formula funding, it won't affect tax rates.

During budget negotiations last year, Brooks opposed the inclusion of $500,000 for the revitalization project and suggested it be put on hold for a year to decrease taxes by 2.5 per cent.

This year's budget was passed in a 4-3 vote. Brooks was among the three councillors who voted against it, with David Wind and Cory Vanthuyne.

In December, after the approval of the budget, Brooks argued the inclusion of the $500,000 resulted in a 5.7 per cent tax increase rather than a 3.2 per cent increase.

Brooks said because the city just found out about the federal funding, it hasn't been discussed how it will affect next year's budget.

"Right now, it's premature because we haven't got the variance yet on it, however I will be very interested to see what we do with this surplus," he said.

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