City staff are recommending council move forward on adopting its operating budget for the year.

At Monday's city council meeting, staff presented members with a recommendation that it direct the budget, fees and charges and tax levy bylaws to come forward for second and third readings.

The three bylaws govern the city's operational spending along with fees for programs and services and property taxes each year.

The recommendation came after a public input session into the annual budget held Feb. 8.

The $59.1-million fiscal blueprint proposes a four-per-cent property tax hike along with increases to a number of services, including a 10 per cent boost to garbage and compost collection and a 7.23-per-cent increase to water and sewer bills.

Among the comments heard over the public input period after the budget was released were issues over transit, economic development, taxes and community associations.

As city financial manager Valerie Anderson noted in her presentation to council, one country residential resident argued those living in such neighbourhoods not serviced by buses shouldn't have their tax dollars go to operating the system.

"The suggestion was that only those served by transit should have to pay this portion of their taxes similarly to the way that solid waste and water and sewer are only charged to those who utilize the services,” the report notes. "Alternatively, if everyone is charged, the suggestion was that transit should be provided to all areas within city limits.”

It's an issue, Anderson said, that's come up before. Council has determined that transit is in the public good, serving the community as a whole and should therefore be funded through general taxes rather than only user-pay.

"Irrespective of whether the individual taxpayers directly use the service or not, they receive an indirect social benefit similar to school tax irrespective of having children in school.”

The city, Anderson also pointed out, is looking at implementing a new bus system next year, though that doesn't include any plans to move out to country residential areas of town. Service was once provided, but was cancelled several years ago due to sparse ridership.

Meanwhile, the Whitehorse Chamber of Commerce argued the budget doesn't go far enough to address economic development issues.

The group also expressed concern over the impact the four-per-cent tax hike could have on local business.

In response to those concerns, the report notes: "The city has worked hard over the past year to develop its economic development strategy and will continue to implement the recommendations contained within the strategy including expansion of new residential subdivisions, continued emphasis on sustainable initiatives and review the downtown parking situation which continues to be a focus of the business community.

"While every attempt is made to present budget information in a variety of formats in order to increase the understanding of the community, a revised approach will be examined for the next budget cycle taking into consideration the suggestions received from the Whitehorse Chamber of Commerce.”

A number of others also expressed concern over the tax hike, it was noted.

The report points out Whitehorse property taxes are significantly lower than elsewhere in the country.

"Based on the projected operating expenditure and increased user fees, the total additional tax revenue required for 2010 was calculated to be four per cent higher than the level of 2009,” the report reads

"As this year was also a reassessment year (reassessments are performed every two years by the assessment branch of the Department of Community Services), on the assessment data was received, the city calculated a mill rate to equate to this total tax revenue increase.

This process allows the city to ‘roll back' the mill rate to account for the average increase in assessment value for all classes of property.”

The Riverdale Community Association expressed general support for the budget, while pointing to its initiatives to develop a youth centre and community centre for the neighbourhood as well as trail maintenance.

"The submissions for the youth program will be reviewed again in the context of the programming being undertaken at the Canada Games Centre; the philosophy of the city thus far has been to provide city-wide youth programming,” notes the report.

"Trail maintenance continues to be budgeted for in the parks and rec(reation) operating budget.”

Groups like the Sourdough Rendezvous Society and organizers of the Haywood Ski Nationals also made presentations over funding grants. Anderson pointed out in her report that total grants for 2010 are expected to exceed $800,000.

Finally, more general submissions called for bike lanes and paths to be maintained through the winter and made arguments that taxpayers shouldn't be subsidizing out of town residents who use the Canada Games Centre.

Other submissions suggested the city should partner with the Yukon Soccer Association to put a new turf surface into the indoor soccer pitch at the centre.

The cost of maintaining bike lanes and paths through the winter will be reviewed over the next year and may be brought forward as an amendment to the snow and ice control policy when it's reviewed later this year.

"Funding for the Canada Games Centre continues to be a matter of debate and is an issue that needs further discussion by council,” the report states.

Finally, the request of the soccer association was a capital request that didn't make it into the capital budget.

Council will vote on moving forward with the budget on Monday.