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SOMBA K'E/YELLOWKNIFE - An early glimpse of the 2012 budget shows a projected 3.08 per cent property tax increase next year.

Carl Bird, the director of corporate services for the city, gave a slide presentation at a special council meeting Monday, outlining what administration sees the draft 2012 budget looking like when it is presented in the fall.

The projected 3.08 per cent increase falls in line with the budget-in-principle that council passed along with the 2011 budget.

During the meeting, Mayor Gord Van Tighem showed his faith in the city's administrative staff by reminding councillors that around this time last year, a 6.95 per cent increase was projected for 2011 but that administration was able to reduce that number to 3.99 per cent.

"There's a lot of work between now and when we see the budget and I know they will be working diligently toward a lower number."

Bird told council that administration has "capped" the increased to 3.08 per cent, which caused city councillor Bob Brooks to question how that can possibly be done.

"What is it that you have to reduce or change to make that happen?" he asked.

"Everyone needs a target and that's the one they've picked," Van Tighem answered. "That's a commitment that they're working toward."

Bird said the tax hike could drop if the city's assessment of revenues shows growth beyond the 1 per cent that is projected. It could also increase though if council adds new programs or expenses to the budget without increasing user fees.

"So, that's kind of what we're looking at," he said.

Projected revenues for 2012 are $58 million, while the projected expenditures will be $48 million.

Capital expenditures, including carry-overs from previous years, account for $24 million. Of that, $15.6 million is for new expenditures.

Bird said so far there has been little public input on the 2012 budget. Residents with budget concerns or ideas can submit them through the city's website.

Council will discuss the budget again at a Municipal Services Committee meeting July 25.

"July 25 MSC is when we'd anticipate specific council input into the budget," said Bird. "It could be in the form of programs you'd like to see expanded, programs you'd like to see decreased, new capital expenditures, a target for tax increase - if it's higher or lower than the one we're projecting right now, so that's the date that we are anticipating receiving that."

Alongside the budget, administration is also working on an asset management plan - a plan that forecasts the city's capital requirements over a 15- to 20-year period - and a municipal costing index, which would help the city determine how much revenue will be needed in the future.

Bird said administration tentatively expects to have that to council by Sept. 6.

The draft budget will be available to the public Nov. 14.

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