NORFOLK, Neb.— Despite levy rates decreasing, more property tax revenue is expected after the Norfolk City staff proposed an over $148 million dollar budget.

The Norfolk City Council discussed the new budget Monday during a special meeting. The council increased the budget by nearly 7%, over $9.6 million dollars.

According to council documents, the main reasons for the increase are major water and sewer projects and upgrades to public safety.

The city’s assessed valuation increased over 9%. The levy rate decreased over 0.15% to 0.255349. Total property tax revenue would increase by 2.7%.

“Based on levy rates of Nebraska first class cities last year, Norfolk will have the fourth lowest levy rate of the 30 first class cities,” city documents said.

Residents would see a higher utility rate this year. Water and sewer rates have increased by 6.5% and solid waste rates will go up by 4.25%.

City officials say the increases are needed to fund $10.3 million of system upgrades such as a new collector well, water tank, and wastewater treatment plant improvements.

A $13.4 million four-year expansion of the police department would begin this year. It would be funded by the half cent sales tax increase approved by voters. The council says the extra revenue would be put towards street work.

Around $4 million of street improvements were proposed, including reconstruction on 25th Street and landscaping along Highways 81 and 275.