Whitehorse property owners will pay nearly four per cent more in property taxes if city council adopts the proposed operating budget.

The $65-million budget was brought forward at Monday evening's city council meeting, with Mayor Dan Curtis presenting his first operating budget address.

The proposed 3.83 per cent tax hike means the average home owner in the city will pay another $65 in property taxes this year.

The average non-residential land owner will pay another $297.

As Curtis noted in his speech, while the city's population is expanding, that puts certain pressures on the community.

"New developments mean an increase to the city's tax base, but they also require municipal services and infrastructure in the form of roads, inspections, water and sewer, etc.,” he said.

"I believe this council has delivered an operations budget which responds to the city's growth and manages the challenges that accompany development of this nature.”

He later went on to "make the case” for the tax hike, citing inflation, salary pressures and the city's recent reorganizations.

The two per cent inflation rate the city has seen in the past year is a full 1.1 per cent higher than the national rate.

Along with the inflation the city has seen, there's the salaries the city pays its workers, with that making up about half the operating budget.

"We have negotiated collective agreements with our employees that allow us to remain competitive in terms of making the city an employer of choice in what is also a competitive labour market,” Curtis said.

"To attract employees who are capable and dedicated, we need to offer competitive salary and benefit packages.”

There's also the city's reorganization, which Curtis described as a "positive step forward as it ensures that we are properly aligned to meet expanding needs and greater responsibilities.”

It does, however, require financial support, he said.

"I think it is important to note that our tax rate, when compared to other cities in Canada, is competitive,” he said.

"Property tax for an average home in Whitehorse remains below the rates in cities such as St. John's, Medicine Hat, Toronto, Victoria, Halifax and Lethbridge (Alta.), to name but a few.”

The city's provisional budget proposes further hikes of 4.25 per cent in 2014 and 3.52 per cent in 2015 for a total of 11.6 per cent in the next three years. Taxes have jumped 27.5 per cent since 2007.

The city has added services like new evening bus service through the week under the proposed budget.

As well, a number of other measures were taken to reduce and eliminate expenses, which, Curtis argued, allowed the city to avoid an additional two per cent hike.

"This will not be a painless exercise,” the mayor emphasized.

"Certain positions will be eliminated, and employees may be transferred to jobs with a higher priority. Fortunately, services, for the most part, will not be affected by this reduction and, of course, the safety and welfare of our citizens our paramount.”

At a media briefing Monday afternoon, Rob Fendrick, the city's director of corporate services, said there are certain positions proposed that will not be filled.

There will be no job losses though, it was stressed.

Money will also be saved by keeping the Canada Games Centre closed on six statutory holidays rather than the two – Christmas Day and New Year's Day – on which it's closed now.

The goal, officials said, was to keep the tax increase under four per cent.

Along with the tax boost, residents will also notice a jump in waste collection rates and on recreational activities.

Collection rates are set to rise by $1 a month from $8 to $9 while user fees for recreational facilities will see its annual 1.5 per cent increase done to account for inflation.

Water and sewer rates will remain at 2011 levels.

"To summarize, council is seeking to establish an operations budget which will manage taxpayer contributions in a responsible manner, consisting of modest tax increases; combined with targeted strategic increases in services, most important of which is transit; spending reductions; with a minimal reduction in services,” Curtis said in closing his speech.

After the meeting, the mayor said it's a proposed budget driven by council, not administration.

"We've listened to citizens,” he said, reflecting on the challenge of producing a budget that gave residents what they wanted while keeping costs down.

"The City of Whitehorse is a very tight ship.”

With first reading of the budget having been passed last night, a public input session will now be held at council's March 11 meeting, with a report on that coming forward on March 18.

Second and third readings are then expected to come forward on March 25.

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