The city's 2012 capital budget released Monday identifies $25.5 million in spending for projects ranging from a high of $6.5 million to a low of $6,000.

Mayor Bev Buckway described the budget at Monday's council meeting as a successful exercise in balancing the needs of today with the demands of the future.

As the territory's capital and largest centre, Whitehorse has seen a lot of the benefits and inherited many of the challenges that come with that prosperity,” Buckway said in her budget address to council.

"Along with more investment, increased employment and the welcoming of more citizens has come the challenge of coping with rapid growth,” she said.

"Increased population has led to more demands on services, more people using infrastructure, and a greater demand for housing.

"In our economy, benefits go hand-in-hand with the challenges, and it is the city's responsibility to plan and manage for growth in a responsible manner for all citizens, present and future.”

The bylaw required to approve the 2012 capital budget received first reading last night with no objections from members of council. Second and third readings are scheduled for early January.

The $25.5 million budgeted for capital funding next year represents a 21 per cent increase above the $21 million in capital budgeted for the current year.

Approximately 64 per cent of the budget or $16.4 million is coming from federal grants, including $4.7 million from gas tax funding to offset the $6.5-million cost of the Marwell reconstruction project, which also includes a $1.8-million charge against property owners.

Almost $9 million is coming from the city's reserves and local improvement charges.

Next year's budget also includes most of the $724,000 worth of work cut from this year's budget as part of the austerity measures the city introduced this fall to balance the books by year's end, including $300,000 to finish off the Takhini North reconstruction.

In addition to the 2012 spending, the capital budget identifies another $16 million on priority capital items in 2013 through to the end of 2015.

The forecast, for instance, includes $2 million in new heavy equipment and one transit bus required to keep pace with the anticipated growth related to the new Whistle Bend subdivision, the first phase of which is scheduled to be available next fall.

The city is scheduled to release its operations and maintenance budget in January. Spending on operations and maintenance accounts for the greatest portion of spending annually.

Of the city's original $80.3-million budget for this year, $59.3 million was earmarked for O & M expenditures.

Of the total capital budget for next year, $20 million is earmarked for 17 specific projects related to replacing or improving existing infrastructure, including:

• $6.5 million for the Marwell reconstruction.

• $4 million for expansion of the Porter Creek reservoir.

• $3.8 million for completion of the Black Street reconstruction.

• $2 million to begin the replacement of the Selkirk water pumphouse originally built in the 1950s, the remaining $2.1 million scheduled for 2013 to complete the project.

• $1 million for a variety of asphalt work in Porter Creek, Riverdale and along Wickstrom Road.

• $190,000 for improvements to traffic lights at Fourth Avenue and Main Street, Second and Main, and Lowe Street and Second, including the installation of batteries to ensure the lights remain operational during power outages, and audible-light signals to assist the visually impaired.

The remaining $5.5 million in the capital budget is sprinkled through the city for everything from $6,000 for a new pool deck scrubber to some $600,000 to provide for computer and software requirements.

The capital budget includes the $1.6-million commitment the city made to help Mount Sima with the $3 million required for a new chair lift, scheduled to make its debut when the hill opens Thursday.

There's also $58,000 identified to purchase new hand-held parking ticket devices that will spit out the ticket in seconds and automatically record the infraction with the main system.

Another $200,000 has been earmarked for planning and design work for Ogilvie Street, from Second Avenue to the clay cliffs.

A long-sought-after white water paddling course in the Yukon River is being advanced with $135,175 dedicated for planning and design.

The budget provides the fire department with $120,000 in capital funding for new equipment, including $30,000 for new turn-out gear and $13,000 for thermal imaging cameras.

"Increased population has led to more demands on services, more people using infrastructure, and a greater demand for housing,” they mayor said last night.

"In our economy, benefits go hand-in-hand with the challenges, and it is the city's responsibility to plan and manage for growth in a responsible manner for all citizens, present and future.”