On Monday night, he proposed a property tax rate of 56 cents per $100 valuation, an 11 percent increase over the "revenue-neutral" rate calculated to adjust for last year's revaluation that increased the value of most property.

It would help pay for a $356 million budget, calling for 90 new full-time employees, more pay for police, a citywide yard-waste collection program and faster construction of capital projects.

Baker also acknowledged that an uncertain economy and rising food and fuel prices have many pinching pennies. This might not be the year, he conceded, to add to Durham residents' burden, but that's a call for the City Council.

Durham leaders have already approved increases in water and sewer rates.

"If the focus of the budget needs to become reducing the tax rate, we're going to have to make some tough choices whether we can do all the things we'd like to do," Baker said Monday. "There is a legitimate question about what should be our focus, expanding services or scaling back some services."

Council member Diane Catotti said she'd be looking for places to trim, but she also said that many increases specifically address key areas of council concern. "We're always mindful of the impact on our citizens," she said.

Mayor Bill Bell said he's sensitive to the economic predicament many face but said he hasn't looked closely enough at the budget to know where he would cut.

"Nobody wants to see tax increases if they can be avoided," he said. "We understand we already have increases in the water rates, increases in certain fees and now possibly in the property tax. We want to try to minimize as much of that as we can."

Baker isn't the only local official looking to dig a little deeper in taxpayer pockets. Wake County Manager David Cooke recommended a 53.4-cent tax rate, a 2.5-cent increase. Orange County, Chapel Hill, Carrboro and Hillsborough all are considering tax hikes as well.

Under Baker's proposed tax rate, the owner of a $186,000 home -- the median home price in Durham -- would pay $1,041 in city property taxes. That's $110 more than if the council did not raise taxes.

The Durham tax increase comes with a caveat.

Property value rose sharply after the most recent revaluation. The city recalculated a lower rate of 50.05 cents that would generate the same amount of tax dollars as the old rate of 61.8 cents. The 56-cent rate would affect property owners differently, depending on how their property value has changed.

Necessary -- and not

Baker said there are some clear necessities that will require more money. The city of Durham is feeling the sharp rises at the gas pump. This budget includes an extra $500,000 for fuel.

Then, there are the nice-to-haves that might not be essential.

Baker said the proposed comprehensive yard-waste program is one of the tough calls the council will have to make. The total cost is $3.2 million, which includes the $1.1 million the city will lose when it waives the $60 fee residents pay now when they elect to have their yard waste collected.

That expense equals almost 1.5 cents on the tax rate. (A penny generates $2.17 million.)

Baker added that he expects the city to have a new state permit allowing the reopening of the city's yard waste composting facility.

It spontaneously caught fire in 2006, which brought to light the fact that the facility had operated without a state permit for more than two years. It was forced to close. Baker said he hopes the city will have a new permit by the time he leaves his post to become city attorney, slated for early July.

Baker's budget proposal includes about $1 million that can fund up to 20 additional police officers or raises for existing officers -- more likely the latter.

A recent study found that Durham's police pay is less than that of many other area jurisdictions, and it takes longer for Bull City police to rise into the highest pay grades. That's resulting in officers leaving Durham for greener precincts, Police Chief Jose Lopez and others have said.

There are 512 available sworn officer positions, about 24 of which now are vacant. The extra $1 million would allow the department to fund up to 532 sworn officers, but Baker said he doesn't anticipate that happening.

Whatever is left from the additional funding -- perhaps all of it -- likely will be used to give raises or bonuses, he said.