At $32 million, Mayor Bev Buckway is describing the city's proposed 2009 capital budget as "fiscally responsible".

The city is planning to spend more than $32 million next year on major projects.

This is substantially larger than what's expected for the three years after that, when the city anticipates spending $13.8 million in 2010, $18.3 million in 2011 and $19.391 in 2012.

Much of the money proposed to be spent next year on capital projects will go to improvements and new development in Takhini North as well as the construction of a new fire hall.

At their final regular council meeting of the year on Monday evening, city council members approved first reading of the 2009 capital budget, a document which focuses more on roads and water services over recreational expenses.

"In this capital budget, approximately 90 per cent of what was recommended by administration in the primary areas of roads, bridges, sidewalks, water, sanitary, and fire protection was funded," Buckway said during her approximately 15-minute budget address.

By comparison, only 25 per cent of what was submitted for sports and leisure was funded. This demonstrates the dramatic reorientation in what is being funded in this capital budget."

The move to focus on the more essential services comes after council adopted its City Services Policy in September. It prioritizes services giving water service, sewer, roads and the like top billing over the city's more recreational persuits.

"I believe that's been very helpful in focusing on the essentials," Buckway said in an interview after the meeting.

Normally, the city releases the capital and operating budgets for the year at the same time. It won't be until the new year, however, that city residents will see an operating budget, which outlines any property tax increases.

Taxpayers have already been told by city staff they can expect at least a four per cent increase in property taxes. Each of the past several years has seen tax hikes.

In earlier interviews, staff also explained the capital budget is being released earlier so the city can plan for its major projects and start working on tenders for those.

The operating budget is coming out later so the territory's property assessments can be done before the city factors that into tax increases.

A large focus of the capital budget is on improving the current and developing new residential areas like Takhini North.

The city proposes to spend $9 million on reconstruction of services in the current neighbourhoods next year.

It's then estimated that in 2010, the city would spend a final $1.1 million on reconstruction and $3 million on developing the new infill area.

While the capital budget proposed is for 2009, the document also includes a further four-year plan into 2012 on what it expects to spend in those years.

"The Takhini North residential development plan pictures an area that is clean, green and safe," Buckway read in her seven-page speech.

"Along with the current area residents, the city's planning and development services department has come up with a plan that features lots of green space, accessible trails and year-round active living opportunities; not to mention that this residential development is located in the geographical heart of Whitehorse."

The new Whistle Bend development on Porter Creek's lower bench set to come on line around 2011. The former Stan McCowan Arena area, Whitehorse Copper and the new Ingram area next door to Arkell mean the city is working to meet the variety of residential needs, Buckway said.

There are also plans for upgrades to roads and services in existing neighbourhoods over the next few years.

Work on the riverfront would also continue, with $275,000 proposed for Shipyards Park in heritage and landscaping work next year, along with another $1.8 million to be spent on landscaping along the Yukon River from Strickland to Ogilvie Street.

Another major focus for the capital budget is on water as the city moves to using well water and meeting new federal regulations.

"We don't want to mess with our water," Buckway said. "We want to keep our water safe."

Ensuring that means the city is planning to spend $7.4 million in 2011 and 2012 on a new Selkirk pumphouse, and just under $3.5 million for well development over four years along with $3.3 million in 2011 and 2012 as the city moves to water metering in 2011.

The move to metering water use is designed to encourage sustainability, city officials have said in the past.

During her budget speech, Buckway also pointed to the city's plans for a new fire hall. Next year the city plans to spend $8.7 million on the structure, followed by $1.7 million in 2010.

"You may remember that the 1998 Fire Location Study indicated that both of our current fire station facilities have a limited life expectancy," Buckway said. "The city is addressing the needs for this and our other municipal facilities."

She then pointed to the $850,000 the city plans to spend over the next four years to expand Grey Mountain Cemetery.

Among the recreational items there is a proposed $157,000 to be spent on the Canada Games Centre this year for things like a $5,000 new child play area (other than the current playroom at the complex), $25,000 on the pool's salt system, $15,000 on new lockers for the wellness centre, $5,000 on a field house vacuum system, $12,000 for the Zamboni's blade sharpener and $25,000 on other equipment at the building.

Further cash will be spent on the city's playground equipment and trail systems.

"We know these investments are appreciated and will be put to good use," Buckway said.

The mayor concluded her budget speech by noting the vision to promote fundamental investments in a fair and fiscally responsible manner.

"Council's job is to provide leadership and direction on the type and level of investment you receive," she said.

We believe it is our role to provide infrastructure and facilities necessary for growth to occur and we submit that this budget does precisely that."

Funds for the capital work come from the many city reserve funds along with other sources such as the federal gas tax that's expected to see the city receive $9.2 million in 2009, $1.7 million in 2010, $9.2 million in 2011 and $9.8 million in 2012.

The capital budget documents are available at city buildings and the city's website at www.city.whitehorse.yk.ca.

Public feedback will be accepted in January before council votes on second and third readings of the bylaw for the budget.

The city's 2008 budget totalled $51 million, and included a 7.5 per cent tax increase.