The city's budget for 2008 will likely jump by $3.5 million on the strength of one vote by council Monday night.

Council voted in favour of the increase so it could award the contract for the construction of the Pot Hole Lake outfall.

Along with voting to swell the budget, with the cash coming out of the city's portion of the federal gas tax revenue-sharing program, council also voted to award the design and construction to Castle Rock Enterprises for $5.6 million.

The project will see a new discharge line built from the lake, which is part of the Livingstone Trail sewage treatment facility, into the Yukon River after the waste has been treated.

With the facility at its long-term storage limit, work has to be done it, it's noted in a report to council.

It's also pointed out that the facility could fail, causing a significant environmental impact to the area if the outfall isn't installed.

While Castle Rock's was the higher of the two bids submitted, with Skookum Asphalt bidding just over $5.5 million, city staff recommended council go with the higher bid.

Skookum wasn't willing to work in the river.

As well, its design was different from the original concept and doesn't have the approval of the territory's water board and Yukon Environmental and Socio-economic Assessment Board.

While council voted in favour of funding the project and awarding the contract, it will still have to approve third reading of the bylaw for the budget amendment.