The local Utilities Consumers' Group is questioning how the city can ask its residents for money in the form of proposed hikes in property taxes and utilities this year.

"The Utilities Consumers' Group cannot support your increase - four per cent in taxes and especially the 12.5 per cent ... water and sewer utility increase," group president Roger Rondeau told council Monday night. He spoke during a public hearing on the city's proposed $55.7-million operating budget.

In setting out the cuts, the city hasn't shown how it will pare administrative and labour costs or made any attempts to be more efficient, he argued.

"You have not demonstrated how you are doing your job," Rondeau said during his presentation as one of about 10 speakers during the hearing.

Rondeau went on to note that even in years where there has been a surplus, the city has raised utility fees.

While he said his group has no problem with the city's water and sewer reserve designed to pay for major projects, there is a problem with the surpluses.

Rob Fendrick, the city's director of administrative services, said Tuesday about 20 per cent of the fees and any surplus are designed to go to the water reserve, which is for capital projects.

Since 1996, just under $830,000 has gone into the reserve from the surpluses in the fund, which pays for operating the system.

In cases where the fund has a deficit, the $4-million reserve is used to make it balance year-to-year.

In 2008, the fund saw a deficit. That means the costs have to be recovered in 2009, which brought the costs up to the 12.5 per cent increase proposed in the operating budget, Fendrick said.

Though another nine people addressed council Monday night, Rondeau was the only delegate to speak about the higher bills taxpayers will get this year.

Most others addressed council on the proposed bus cuts, including the end of Friday evening service.

Doug MacLean, president of the Riverdale Community Association, raised several matters the group is dealing with, including transit. The association will continue its work with city officials to improve service from the neighbourhood he said.

MacLean noted over the next year he expects work will continue on the neighbourhood plan, as well as on the possibility of a youth centre in the area.

Concerns have also come up over the Millennium Trail and erosion in the area that runs along the Yukon River along with the use of snowmobiles, ATVs and dirt bikes on other area trails.

The association also supports the city's plan to go to water metering for all homes, he said, in submitting a written document of his presentation to city officials.

Council will vote on the proposed budget at its Feb. 23 meeting.

Coun. Doug Graham was absent from the meeting, while Coun. Jan Stick attended by conference call.