A wholesale electric rate increase and planned improvements to the city’s water supply lines are pushing utility rates up in the coming year, but property taxes should remain stable.

The city budget heads for its second and final vote tomorrow, and other than utility rates, holds few changes from the previous year for citizens.

The pass-through increase in power costs will boost electric rates 6 percent. To fund the parallel water supply line into the city from the treatment plan, city council voted to increase water rates by 5 percent.

If the Capital Projects Sales Tax referendum passes, the water rate climb is expected to stop there. The amount asked for in the referendum would pay the balance of the project. However, if the referendum fails, city leaders expect to then implement two more steps to the water rate rise, eventually approaching a 14-15 percent increase from current prices.

The general fund budget, basic operating money for the city with the utility department separated out, is actually dipping slightly from last year’s numbers. City employees will see a 2 percent cost of living raise across the board. However, the budget total is $7,879,624 — approximately $300,000 less than a year ago. City Manager Jeff Shacker says you can trace this amount to almost exactly what was budgeted for last year’s expenditure to obtain a new fire truck for the city. Shacker says they tried to remain neutral in the budget, sticking to a “bare bones” budget from last year.

The millage rate will probably dip, although what is collected in funds should be the same from last year, due to the expected implementation of reassessment. State law requires that millage values are then “rolled back” to keep municipalities from collecting a windfall of property tax money in reassessment years. The millage rate will be set in the late summer.

Tomorrow’s special called meeting will be at 6 p.m. at City Hall in the Council Chambers.