City Council takes a first look at the operating budget for the next fiscal year.
It includes a property tax hike of 1.67 cents. Mayor Glen Robertson said homeowners with a home valued at $125,000 to $150,000 would pay $20 more a year.
The budget also includes a base rate increase of 5.75 percent for LP&L customers.
Mayor Robertson has a few concerns with the proposed budget.
"I am concerned with the base water rate. We have got to change the mentality in this city. We got to start working on conserving water and incentivising our consumers to
conserve water. I think we have a lot of tweaking there. There is a lot of money in cash reserves in some of these funds that I think we need to pay down some debt with," he said.
Robertson hopes council can soon come up with a solution on the stormwater rates.
The current rate model is included in this proposal.
The mayor expects an update in the next 30 days from city staffers who have been researching options. Council has until the end of September to adopt the city budget.