City council tabled its proposed 2012-2014 operating budget at its regular council meeting Monday night.

If approved, the budget would include a three per cent tax increase and spending of $63,311,208 for 2012.

The city's capital budget approved in December amounts to $25.5 million for a total municipal budget of $88.81 million.

Taxes are up by about $2 million this year, said Robert Fendrick, the city's director of administrative services.

Increases translate to about $2,130 in annual taxes per residential taxpayer, or an increase of about $29 per year.

The city had initially predicted a four per cent increase, making up the remaining one per cent, using a "blended” taxation scenario of "rolling back” the city's mill rate in addition to budget adjustments.

"This time last year, we were predicting a four per cent tax increase, and we received council direction for a three per cent tax increase this year,” said Fendrick. "It's for the benefit of the taxpayer.”

In response, the mill rate, the amount of tax payable per dollar of the assessed value of a property, was reduced to 11 per cent.

Spending reductions, including job cuts, enabled the city to recoup some of the cost.

Informations systems staff will be reduced by one position, which saves the city about $100,000 per year in salary and benefits, said Fendrick.

A training and administrative position at the fire department, approved last year, will also be cut for a $101,000 saving.

Reductions in the budget and some municipal landscaping costs were also absorbed for a saving of $79,000.

There are still several areas where spending will rise.

The city is still in negotiations with the International Association of Fire Fighters (IAFF), the union representing the Whitehorse Fire Department.

The city has allowed for $400,000 of retro-payment for the firefighters, based in part on arbitration results from jurisdictions, such as Surrey, B.C.

The city has also allocated costs for future years, amounting to $900,000 in 2012 and $1 million per year in 2013 and 2014.

As the city reaches its greatest population yet, the budget for essential services has also increased greatly.

Essential service costs will amount to about $445,000 in 2012.

They will include increases in spending on the city's solid waste management plan — including the hiring of an environmental co-ordinator for about $50,000 per year — and the addition of a number of positions in finance, maintenance, safety, public works and $66,000 for back-up information systems.

Public works costs for the Ingram and Whistle Bend subdivisions are also included.

Discretionary spending will amount to $241,000 this year.

Those costs include adding an additional bylaw constable for $83,000, and reallocating some funds for summer constables for the creation of an attendant position at the city's animal pound — a $37,000 per year job.

In addition, the city will also add a half-time heavy equipment mechanic to help service the city fleet at $26,065 per year and will spend $130,000 on staff training.

Other remaining cost increases will be taken up by business improvement initiatives, said Fendrick.

Those include a $25,000 budget for the ATV snowmobiling awareness campaign and a $20,000 donation policy for council to fund additional charitable causes.

Costs for labour settlements and cost increases under the city's pay equity system, required under the Yukon Human Rights Act, will not be shouldered by taxpayers directly but will instead be paid through a $1.9-million reserve fund.

Some costs will not change at all.

There will be no increase, for instance, in solid waste quarterly billings or tipping fees at the landfill and a zero per cent boost in water and sewer costs in both quarterly or metered rates.

To accommodate the reduced tax increases, some capital projects will be deferred.

Some landscaping costs at the Canada Games Centre will not be performed this year.

As well, the installation of new lockers at the facility's wellness centre will be put on hold.

Design work for the reconstruction of Ogilvie Street and unpaved road reconstruction on Wickstrom Road, as well as the purchase of some small equipment for public works have also been stricken from this year's budget.

Additional thermal imaging cameras — which the fire department uses to identify people through smoke, darkness, or heat-permeable barriers — are also off the table.

The fire department already has two such cameras, which are included with its first response vehicles, said Valarie Anderson, the city's manager of financial services.

"They expressed that they wanted them in all units, and we think it's a good idea, but it's not entirely necessary right now, and if they express that they want it included in next year's budget, it will be considered.”

All in all, the city has said this year's budget differs little from last year's spending and from projected rates.

Last year's revised budget total was $63,804,804, but most of the spending difference will come from reserve funding allocations, said Anderson.

"We have approximately 20 different reserves set up for various purposes. For instance, we have a computer reserve, set up for computer infrastructure, a water and sewage treatment reserve for that purpose, things like that,” she said.

"Our budgets have been in the order of $60 million, and this year is no exception,” said Fendrick.

"Depending on what kind of reserve transfers and land transactions are being carried on in the course of that year, but for 2012, we're talking about an almost $64-million budget and then $63 million in 2013 and then also 2014.”

City officials predict second and third readings of the budget proposal will occur April 10.

Voters will elect a new mayor and council in October.