During a meeting Monday night, Mayor Don Stanley said the property value has dropped by $5.5 million, and that means lower tax revenue that they use to provide city services.
Stanley said city leaders feel this action is necessary.
"We need to do something to keep up with the rate of inflation," Stanley said. "We could try to sit on it and we would go further behind as far as the budget is concerned. If we're going to keep the services at a level we feel the people want, then we feel we've got to increase the millage rate."
With the proposed increase, the city is required to hold public hearings where the public will be able to comment.
Also on Monday, the council held the first reading on a proposed 2.5-percent increase in water and sewer rates.
City Councilman Rush Mauney revealed that the city has lost some 200 water/sewer customers, and he said that affects the revenue stream.
Mauney proposed the rate increase, with a review within three months to see if the revenue is at a level the city needs.
The council also discussed garbage pickup rates. One of the suggestions was to bump up the base rate to $10 per month. More discussions are expected before each of these items is officially approved.
http://accesswdun.com/article/2013/7/263162