The City of Whitehorse is gearing up to release its 2008 annual budget a little later than usual this year, while speculation over a tax hike lasts a little longer as well.

The city will release its 2008 budget Dec. 10, the Star has learned, though it is typically unveiled in November.

'Let me put it to you this way: it's going to be an interesting one,' Coun. Doug Graham said in an interview last week.

'This one has taken a little while longer.'

He said this is the eighth budget he has worked on. Graham said he could not go into any detail about the spending blueprint until Mayor Bev Buckway makes her formal speech later this month.

Graham's hinting comes on the coat tails of an eerie budget forecast earlier this year.

In an August meeting, city council heard reports from the city's financial manager that the city was facing a deficit of $304,000.

Valerie Anderson said the forecast deficit, spawned from the second quarter variance report, could still change before year's end.

Buckway commented at the time that if there was a deficit in the $300,000 range at budget time, she would not rule out further tax increases for Whitehorse residents, following last year's five per cent hike.

Following that August announcement, city departments were asked to be mindful of spending and frugal with what financial resources remained.

To make matters worse, Yukon Real Estate Association president Mike Racz told the Star that with lot development for houses frozen until at least 2009, the city is setting itself up to lose money and rely on higher taxes for years to come.

'The property taxes here are fairly reasonable for the services you get, but that doesn't mean the city should be doing things that raise taxes all the time,' he said.

'They could lose $1 million a year in revenue of what they could get from new construction.'

The city's chief means of revenue comes from property taxes, as well as from fees on city services.

Racz said that if new city lots aren't put on the market until 2009, then the city would likely not receive that property tax revenue until 2011, 'and that's four years of revenue loss of about $5 million,' he said.

Racz said he has cautioned city officials to think more long-term about the housing market, but that his suggestions have gone largely unanswered.

Last year's budgeted tax increase of five per cent responded to the needs of a growing city, Buckway had said, and were necessary just to maintain existing services.

This past year, councillors have been entertaining existing and new ideas of city growth, leaving many to wonder whether the 2008 budget will reflect those ideas with higher property taxes and, if so, how high.

Among the newer ideas city staff have been entertaining are green and sustainable initiatives, such as the city's integrated sustainability plan. All signs indicate the budget will include a focus on those areas where sustainable development and green alternatives may be appropriate, but it is not yet clear if that will translate into further tax increases.

As hypothetical as the situation is for the time being, Buckway has told the Star she has found Whitehorse residents to be understanding, if even forgiving, of tax increases.

Racz said that while Whitehorse residents have expressed a need for maintaining green space and limiting infill, they do not realize the city needs revenue, and costs go up.

With just a week to go until the 2008 budget is announced, councillors have said the hard part is over for them.

Graham said his end of the work effort and research was completed about a month ago, but that city staff continue to work feverishly on the budget leading up to its release date.

'It's been priority number one for city staff, I'd say, for the whole month of November.'

Coun. Jan Stick said the councillors sat down with city staff and administration for two straight days going over different options and reviewing the 2008 budget as a work in process.

'We're still talking about it and tweaking it,' she said last week.

'This is my third budget and let me tell you: it doesn't get any easier.'

Stick said creating the city's budget is certainly a councillor's most complicated and difficult task.