There should not be a tax increase for the City of Newberry but residents will see a slight increase in their electric bills.

City council will give final reading the budget Tuesday at 7 p.m. but the proposed budget contains no tax or fee increase.

Piedmont Municipal Power Association (PMPA) which sells power to the city is increase its wholesale cost of power by 5.9 percent and the city is passing on a 4.5 percent increase to its electric users. This means a $100 power bill will increase to $104.50.

In total the the city is reducing its general budget $109,000 or by 1.4 percent.

The city will be doing rehab to the water plant without any increases.

Newberry City Manager Jeff Shacker says that the city has eliminated four positions through attrition, which has saved $450,000.

Also the city is expecting a 2 percent increase in hospitality and accommodations taxes.

Since 2001-02 the sales at local restaurants, prepared foods in grocery stores and hotel accommodations have increased from $17.1 million to $30.7 million annually in the city.

Also utility costs will be decreased by $6.2 million due to projects with grants in West End and at the wastewater treatment plant finishing up.