Mayor Bev Buckway responded to public feedback on the proposed budget last night, hinting the planned 7.5 per cent property tax increase may not budge.

This comes in spite of a Yukon government property assessment increase of an average 16 per cent, announced in late December.

She said, reading from a prepared statement, that the assessment increases will impact residents' property tax payments, and that options are being reviewed by council members behind closed doors.

'However, the city's analysis still reflects that Whitehorse citizens and businesses pay considerably lower property taxes than comparable properties in other Canadian jurisdictions,' she said.

Buckway returned to the mantra that a growing city requires growing service levels, which in turn require higher taxes.

'Given projected future cost increases, any reduction in service levels, it is necessary to pass these costs on to the taxpayer through projected increases in the mil rate.'

The mil rate is the tax per dollar of assessed value of property. This rate is the same for all non-commercial residents, explained city manager Dennis Shewfelt.

City council unveiled an administrative report summarizing public feedback on the $50-million operating budget, which is typical and required after a public hearing is held.

This time, however, council members offered their responses to the feedback. They were unable to answer to comments made at last week's hearing, in accordance with procedure.

Last night, one council member expressed surprise that the results of private discussions among council were being revealed at the public meeting.

'This is just an administrative report. What changed?' asked Coun. Doug Graham. 'I would have liked to have known this before coming to council tonight so I could have something prepared.'

Shewfelt explained that council had suggested presenting the report in this format. While he regretted that Graham had not been informed, Shewfelt said, the report in no way breaks with decorum nor procedure.

Moving on with the report, Buckway responded to public comments on transit changes, city facilities, fire protection changes and service levels, water issues, waste and compost issues, community association requests, grants and general feedback.

She said city staff compiled feedback from last week's public hearing, letters, e-mails, telephone calls and media reports.

In responding to queries on the proposed 50-cent bus fare increase, she said, 'The transit fare increase is conservative and based on the fare structure of a comparable jurisdiction.

'The city is looking at overall strategies to encourage more ridership, including adjustments to parking meter rates, as suggested.'

Buckway said the city received comments that the Canada Games Centre is costing too much, and that costs should be minimized.

The 2008 proposed budget document shows between 2008 and 2010, the centre is likely to cost almost $3 million more than it will bring in, which will use up 12 per cent of total taxes collected.

'The perception of increasing costs at the centre is one that must be addressed by council and administration and balanced with the longer-term investment of health and welfare in our community.'

She next clarified the city's plans for Fire Hall #2 in Takhini, after some feedback indicated residents' confusion.

'There has been no decision to consolidate or expand the number of fire halls,' she said. 'What is currently being proposed is a replacement project for Fire Hall #2.'

The proposed $3-million water meter installation is not scheduled until 2011, but it had many a tongue wagging, said Buckway.

Submissions were received both for and against the meters, with most against them, arguing heightened costs and wondering why this project would receive a spot in the 2008 city operating budget.

'Water metering has been considered and discounted at several times in the past due to the cost of implementation,' said Buckway.

'The variable now has changed due to gas tax funding.'

Federal grants will pay for the meters' set-up, but Graham asked whether city costs would bear the brunt of the program's maintenance.

He said unless the meters can be checked digitally and not by city staff driving around to check them manually, the project should not go ahead.

Buckway said the $1.35-million expansion of the compost cart project would also be funded by the gas tax.

'The increase in scavenging permits (and fees) was opposed, as it will reduce the number of scavengers, which leads to less reuse of items,' read Buckway.

She said the fee increase, from $10 to $100, was proposed 'to be a deterrent, given potential liability issues.'

Last week's public hearing saw representatives from Riverdale asking council to consider access over the Robert Campbell Bridge. Buckway explained last night that it would be impossible to widen the bridge to add more lanes.

She also answered to questions on the hanging flower basket program, to which the city proposes to give $6,000 to cover the costs of flower watering and general maintenance.

'It should be noted that this maintenance is contingent on the Main Street businesses contributing $6,000 for the flowers' purchase.'

Buckway informed the public that grant requests had been received in writing from the Yukon Convention Bureau (YCB) and the Great Northern Ski Society, which is responsible for the operation of the Mt. Sima skiing facility.

The YCB requests that a proposal to reduce its funding from $30,000 to $15,000 be reconsidered, as 'they will be bringing a large group to Whitehorse in summer 2008 that will generate $70,000 in revenues to the city.'

The ski society requested an increase from 2007's $12,500 grant to $30,000 in core funding. Delegates from the society were scheduled to address council at the meeting, but did not attend.

Buckway said the city forecasts spending $828,000 in 2008 on grants. Later in the meeting, Coun. Florence Roberts said council would be reviewing its grant policy.

'Every year they should apply, so they don't expect that because they got one last year, they'll get it again,' said Coun. Dave Austin, further explaining Roberts' point.

Buckway read off a list of public comments that did not fit into the above-mentioned categories. The list of 26 comments included:

Rein-in the unions;

Vehicle replacement policy needs to be reviewed;

Lewes Boulevard landscaping is appreciated;

Booster Station on Two Mile Hill doesn't need to look as nice as it does; and

Takhini subdivision water and sewer system should be fixed at the homeowners' expense;

Buckway and council offered seven responses to queries.

'There were a number of requests for cost cuts; however, council receives as many or more requests for more service,' said Buckway.

Graham repeatedly expressed his dissatisfaction with this sentiment.

He said he fundamentally disagrees with the proposed 7.5 per cent tax increases, and the subsequent four per cent increases scheduled for the next two years.

'Over time, you're looking at a huge tax increase over the next six to eight years for taxpayers,' he said.

'There's nothing you can say or do to convince me that this is necessary.'

Earlier this month, Buckway had hinted that the proposed 7.5 per cent property tax increase could change, in light of what she called 'surprising' property assessment values from the territorial government.

Last night, she told the Star that when council was penning the proposed budget, administration and councillors were working with an estimated property assessment average, but acknowledged that estimate did not correspond to the higher figures announced by the government.

She also confirmed that the city will make more money off of property taxes given the higher property assessments it had expected.

Even so, all signs in council's administrative report indicate a 7.5 per cent tax increase may be the figure that returns to council for a final vote.

In the next week, council is set to decide whether it will proceed with a second reading on the proposed budget, or whether to delay the reading and vote to give themselves more time to consider options and review the budget.