CARRBORO - Town Manager Steve Stewart has proposed an $18.5 million budget with new spending for two additional police officers, six flushless urinals at the Century Center and more money for a local affordable housing agency.

THE TAX RATE

Stewart's budget would raise the property tax rate by 4.9 percent for fiscal 2008-2009.

The rate would rise 3.23 cents to 68.6 cents per $100 valuation. The owner of a house assessed at $200,000 would pay $1,372 in town property taxes, a $64.60 increase.

The town tax rate is part of Carrboro residents' total tax bill. Most property owners in the town also pay county and special school district taxes. Orange County has not released its proposed budget yet.

WHY TAXES ARE GOING UP

At the current tax rate, town property tax revenue would rise a projected 2 percent, according to Stewart. Sales tax revenue is expected to increase just 1 percent.

Together, the increase in the town's two principal revenue sources would trail inflation as measured by the Consumer Price Index, now at 4.1 percent, Stewart said.

"I don't recall, at least in recent history, a more dim outlook in terms of revenue projections," he told the Board of Aldermen on Tuesday night.

"Last year I was able to give you two options, one of which included a no-tax-increase option," he said. "This year, in good conscience, I can't give you that kind of option and continue to provide that level of services that our community has come to expect."

HOUSING MONEY

Stewart is recommending an additional $4,000 for the Orange Community Housing and Land Trust -- half as much new money as the affordable housing agency requested. The land trust received $26,000 this year.

Alderman Jacquie Gist said she will continue to push for the full additional $8,000. If the town wants the organization to do the job the town has assigned, the town needs to provide the extra money, she said.

Land Trust Executive Director Robert Dowling said he needs to hire more staff members to handle his agency's growing number of properties and to increase salaries. Gist called Dowling's pay "inadequate."

WHAT'S NEXT

The town will hold a public hearing on the recommended budget at 7:30 p.m. May 27 meeting at Town Hall, 301 W. Main St.