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.

Stewart's budget would raise the town property tax rate by 4.9 percent for fiscal year 2008-09.

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.

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 Tuesday night.

"Last year I was able to give you two options, one 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."

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