Hermitage residents haven't seen a tax increase since 1991 and they won't see one in 2003 if city commissioners stick with a $9,016,312 general fund budget they proposed on Tuesday.

A mill is $1 for every $1,000 of a property's assessed value. At 5 mills, a home assessed at $20,000 carries a property tax bill of $100. Property taxes are expected to generate $1,118,000 next year.

The city's earned income tax is expected to bring in $4,100,000 next year.

Increased costs include buying $60,000 worth of street department equipment to carry out the city's plan to have the street department conduct regular maintenance of storm water drains, City Manager Gary Hinkson said.

Other increases include about $100,000 more for the police budget, reflecting a 3.75 percent wage increase in the last year of the police department's three-year contract, Hinkson said. Nonuniformed city employees will receive a 3.25 percent wage increase in April, he said.

Hinkson also said the city paid off the municipal annex building this year, which will save about $50,000 a year.

Commissioners are scheduled to vote on the budget at 7:30 p.m. Dec. 18 in the city building.