Langley City is looking at an average $70 tax increase for 2012.

That would include a 1.89 per cent increase in City taxes to make up for a $389,370 gap in the budget. The increase also includes money the City must collect for Metro Vancouver and the regional services it provides.

Councillor Ted Schafer praised staff for keeping the tax increase to 1.89 per cent for the City portion.

"I would bet that would be one of the lowest in the region," he said.

Coun. Dave Hall said residents are facing tax increases each year which end up compounding.

"We shouldn't expect the taxpayer to absorb an eight per cent increase, especially year after year after year," he said.

He made a motion to allocate some of the City's 2011 operating surplus to 2012 operations instead of capital reserves but no other councillor seconded his motion, so it died before any discussion or action.

Hall also questioned why there are annual increases from Metro Vancouver.

"How can council or the public or someone influence the Metro board?" he asked.

Metro Vancouver sets its taxes and fees, and the City doesn't have a choice but to collect them, as a member of the regional district.

"We have to go through Metro Vancouver to dispose of our garbage," explained Darrin Leite, the City finance director.

Hall also questioned why the City takes any operating surpluses and puts them into capital reserves instead of using it to reduce taxes the next year.

Leite said the reasoning is to put away money for infrastructure and capital work. The surplus from 2011 is expected to be more than $300,000.

As well residents are faced with increases from Metro Vancouver that the City collects. They include a 50 cent increase to recycling fees for single family dwellings and slightly more for multi-family, a $9 increase for garbage collection, a six per cent increase for water (about $20 for a single family home), and a 7.7 per cent increase for sewer rates (about $16 per household).

The City's annual financial plan open house starts at 6 p.m. on Feb. 8 in City hall. Staff will be available to answer questions about the budget.