NATCHEZ &045; The public will get its chance at 5 p.m. today to tell city officials what they think about a proposed 5.5-mill tax increase, the ways proceeds would be used and the city’s overall budget for the fiscal year that starts Saturday.

Earlier this month, aldermen proposed the increase, which would generate about $522,500 for the city and would include 2.575 mills to fund the library and 1 mill to fund the Economic Development Authority, freeing up some of the general fund money the city now uses to fund those agencies.

The proposed 5.5 mills would be an increase of $55 per year on a house assessed at $100,000.

At the hearing, City Clerk Donnie Holloway said, &uot;we’ll have handouts that help spell out the budget Š and the tax increase, what it’s for.&uot;

Without the increase, city officials said they expect a shortfall of about $800,000 for the upcoming fiscal year due to such things as the increasing cost of insurance, utilities and fuel.

However, under state law a hearing must be held on the proposed budget, including the tax increase, before it is passed.

Normally, local governments have until Sept. 15 to pass their budgets for the upcoming fiscal year and file them with the state.

But this year, the city declared a state of emergency after Hurricane Katrina and took advantage of a waiver that allows local governments, during emergencies, to wait until Sept. 30 to pass their budgets.

In addition, aldermen are considering raising garbage fees $2.50 a month per household and not filling two vacant Fire Department positions and two vacant Police Department positions and are counting on a 3-percent rise in sales tax revenue.

Together, those changes and projections would give the city an estimated $927,000. That would be enough to cover the projected shortfall and to help pay for other uses city officials have recommended and, among other things, slightly increase the amount the city sets aside for matching funds for capital improvements such as street projects.

In 2000, the city raised millage from 33.033 mills to 37.232 mills. The millage increase that year was dedicated to debt service.

The last increase before that year was in 1986, when millage was raised from 25.435 mills to 33.033.