After four weeks of line-by-line reviews, the city council has added about $12,500 to the proposed 2011-2012 municipal budget of $10.1 million.

The council has one more evening of review scheduled for Monday, May 23 before it will consider preliminary adoption of the budget.

The council has not made any significant changes from the package submitted April 20 by City Manager Rosemary Kulow.

The budget came in at $10,111,922, up 3 percent from the $9,811,269 budget approved by the council last year.

Rising fuel and health insurance costs, coupled with decreased revenues, will require a hike in property taxes to maintain the same level of city government services during the next year. If the city budget is approved as recommended and the proposed Regional School Unit 13 spending package is enacted, an average homeowner can expect to pay an additional $110 in property taxes.

The budget as recommended by the city manager eliminated one public works light equipment operator position and one secretarial position in the police department. Councilors, however, have indicated they may add back in the public works post.

Part of the $14,000 in addition is $5,000 for maintaining Sunday hours at the public library.

Health insurance costs are budgeted to increase 10 percent.

The budget calls for a significant change in health insurance for new non-union workers and Kulow said changes may be needed in union contracts when they expire in a little more than a year. Her proposal is for the city to only pick up 85 percent of health insurance premiums for the new employees hired for non-union jobs. The new employees would be responsible for any additional costs for family members. The city currently picks up 85 percent of the costs for family coverage as well.

The city expects to spend $182,000 on fuel in the upcoming year, a 15 percent increase.

Union workers will receive a 3 percent raise starting July 1 as agreed to in a contract settled more than a year ago. City workers took no raise two years ago and received a 3 percent increase last year. The contract will expire in June 2012.

Non-union workers, which include department heads, will receive a 1.5 percent increase for 2011-2012. During budget deliberations, however, councilors expressed dissatisfaction with that gap.

If the city budget is approved as recommended and the RSU 13 budget is approved as recommended, the city tax rate is projected to increase from its current $18.20 per $1,000 of assessed valuation to $18.87, an increase of 67 cents. A person with a home assessed at $165,000 would pay an additional $110 for a total tax bill of $3,113, which does not take into consideration the homestead exemption.

The largest portion of the increase is due to the city’s share of the school budget increasing. The amount of property taxes proposed to pay for the municipal budget is projected to increase nearly 4 percent to $6.5 million. The amount of money the city will pay RSU 13 is projected at $7.3 million. Another $692,000 goes to Knox County.

Final adoption is set for Wednesday, June 22.

The proposed budgets for individual departments are:

• Police $1,870,000, up 4 percent.

• Public works $1,518,000, down 3 percent.

• Fire $1,435,000, up 4 percent.

• Debt repayment $1,081,000, down 1 percent.

• Lights and hydrants $594,000, down 2 percent.

• Library $586,000, up 2 percent.

• Recreation $367,000, up 3 percent.

• Code $201,000, up 4 percent.