Home owners in Whitehorse can expect their property tax bill to go up 1.2 per cent next year while their utility bills increase by four per cent.

The city unveiled and passed first reading on its $73-million 2017 operating budget on Monday evening.

The 1.2 per cent tax hike will amount to an average increase of $47 a year on residential property tax bills.

Meanwhile, water and sewer charges will climb from the current monthly rate of $75.94 to $78.98 each month.

The city is also proposing to use reserves totalling $477,000 next year to fund the operations of the system.

Waste collection rates are proposed to remain the same, at $11 each month.

“With your tax dollars, our city will continue to deliver top-quality services to all citizens,” Mayor Dan Curtis said in his three-page budget address.

“This includes snow-clearing, road maintenance, recreation programs and a number of other important services.

“These municipal services are some of the many, many reasons why Whitehorse is an ideal place for employment, business, education and pure enjoyment of our wilderness city.”

Curtis described the budget as a balanced spending plan that will see the city continue to live within its means.

City staff worked hard to find efficiencies while ensuring services continue to be provided to a high standard.

He pointed out the city has worked to keep the tax rate low, maintaining it at 1.7 per cent for the last three years.

While the city was able to get it down to a proposed 1.2 per cent for 2017, provisional budgets for 2018 and 2019 anticipate 2.3 per cent tax increases.

The provisional budgets set out last year had anticipated a 1.7 per cent hike in 2017, followed by a 2.3 per cent in 2018.

“Though tax increases aren’t usually welcome, it is a necessary action in order to cover essential services for our community,” Curtis said.

Speaking to reporters after the meeting, the mayor explained taxes continue to rise each year out of a need to keep pace as much as possible with inflation.

“We have to keep up with it,” he said, noting that not raising taxes would evenutally take its toll and result in a larger jump in tax rates.

“Taxes help pay for our roads, fire protection, recreation facilities, parks and trails, transit, planning, engineering and other operations that help keep our city running,” he said.

Plans for the proposed new $45-million operations building fall under capital spending.

However, Curtis pointed to the new building as an example of the city looking to run more efficiently to improve services and save money.

“The new operations building will make our operations safer and more efficient in future years by relocating and consolidating those services,” he said.

“This project means that fewer pieces of heavy equipment will be seen in the downtown core and prime real estate will be available for development in our downtown and industrial areas.

“This is one of many steps our growing city is taking to become a more efficient, cost-effective and sustainably-run community.”

Among the service improvements proposed for 2017 are additonal transit hours for the Whistle Bend neighbourhood.

Transit there has been limited to operation during peak hours – Monday to Friday from shortly after 8 a.m. to around 9:10 a.m. and then from just after 3 p.m. to just after 5 p.m.

In his speech, Curtis said residents in the city’s newest neighbourhood have been patiently waiting for new and expanded services there.

“A growing community along with the new long-term care facility will create higher demand on our transit service,” he said.

“I am very excited about the future of Whistle Bend. Eventually, we will see shops, cafés, schools and more, as it is envisioned to grow to be twice the size of Riverdale.”

The city expects to spend $4.4 million on transit next year, with revenues from passes, tickets and advertising covering $1.3 million of that.

The city will continue to offer its Super Pass to transit and Canada Games Centre users.

The Super Pass essentially gives 12.5 per cent savings on those who purchase both a monthly transit pass and Canada Games Centre membership.

Also funded through the operating budget is a new position with the fire department.

“A new fire prevention officer will benefit our community by providing more fire prevention education, and will help us ensure all our residents, including our most vulnerable, live in safe buildings that meet the fire codes,” the mayor said.

The budget also allows for planning work to begin on hosting the Arctic Winter Games in 2020, Curtis said.

“The Games are a tremendous benefit to our businesses and residents,” Curtis said. “Whitehorse last hosted the Games in 2012 and it is an excellent opportunity for our community to celebrate sport, social exchange and cultures with our northern neighbours.”

The budget also includes a provision to provide the rental fees for Takhini Arena as the Whitehorse Huskies senior men’s hockey team gets set to host the Coy Cup in March, city spokeswoman Jessica Appollini confirmed this morning.

The Huskies made a presentation to council last week detailing their request for the $6,355 cost of renting Takhini Arena during the five-day tournament.

Throughout his speech, the mayor pointed to the work of staff in keeping the city’s services running smoothly and went on to note the city’s role as an economic driver for the community.

“Within our community we understand the importance of local purchasing and we are proud that most of the city’s budget is spent locally and put right back into our local businesses and services. These dollars are invested in our people and in local goods and services that positively impact our community.

“A great example of the city’s support for local spending is Yukoner Appreciation Day. This year we provided parking downtown for our residents so they were better able to support our local businesses. Community efforts such as this help strengthen our economic prosperity.”

He then invited residents to have their say on the proposed spending plan at an input session during council’s Jan. 23 meeting. Second and third readings are then scheduled to come forward Jan. 30.

The budget documents are available on the city’s website at www.whitehorse.ca