How much Whitehorse property owners pay for a local improvement charge (LIC) could be changed, and the Marwell area could be the first neighbourhood to deal with the new prices.

At a meeting of council and senior management officials held at noon Friday,Wayne Tuck, the city's engineering manager, brought forward for discussion potential changes to the city's policy and bylaw around its LIC.

The policy sees benefiting property owners pay approximately one-third of the cost of road work happening next to their lot.

As Tuck explained, the updates would see separate LIC rates established for paved urban areas and another for commercial and industrial areas which have road side ditches.

The equation to come up with the price tag would also consider the current costs of construction and, thanks to suggestions from council members, be reviewed every five years.

It's been about 15 years since the city last reviewed its LIC criteria. The equation to determine approximate construction materials for LICs has been adjusted annually to match inflation.

The inflation rate in a given year reflects the average price increase to a number of goods and services and is not specific to construction, which can be higher in a given year, Tuck said.

The new policy would set a rate more in line with the current costs of construction materials.

Moving to a system of separate rates for urban and non-urban roads would help address the issues that come from varying standards for different areas.

As a more industrial use, for example, roads in Marwell don't require the sidewalks and other features needed in residential areas.

Standard rates would be established at $1,675 per metre of frontage in urban areas and $935 in non-urban areas.

Residential and non-profit organizations owning property would pay one-third of the standard rate, while non-residential property owners would pay two-thirds of the standard rate. The new category for the government would see it pay the full standard rate.

A 15-year period to pay back the LIC would remain in place, as would the clause that if more than 50 per cent of benefiting property owners object to the LIC, it doesn't go ahead.

Council members didn't appear to have any major issues with the suggestions proposed.

All were in agreement when Coun. Doug Graham argued in favour of a five-year review of the LIC, something Tuck said he would add to the proposal before it was brought forward at a formal council meeting.

The policy will also be considered by council before staff begin working on an LIC proposal for Marwell, said Brian Crist, the city's director of operations.

The city has allocated $2.4 million to upgrading Industrial Road in its capital budget earlier this year, with officials suggesting an LIC wouldn't be levied on the work because it is now an arterial road given the level of traffic.

On Friday, however, council learned the work planned for Industrial could be part of a larger project which would see much of Marwell fixed up, and that would include an LIC after all.

Both Councillors Florence Roberts and Dave Stockdale were quick to state they understood property owners on Industrial Road wouldn't be charged for the roadwork.

As city manager Dennis Shewfelt stated, however, though that had been discussed, it was never formally brought forward and voted on by council.

Tuck expects to bring forward the LIC policy and bylaw changes to a formal council meeting in the coming weeks.