(KNZA)---The Hiawatha City Commission Monday evening approved a proposed 2026 budget for publication after agreeing on a property tax levy.

Following discussion, the Commission voted unanimously to set the tax levy at 37.661 mills.`

The proposed tax levy is nearly 1.9 mills above the revenue neutral rate.

The budget includes a three-quarters of mill increase for the library. The library board sets their mill rate.

The proposed budget calls for the city to collect nearly $1.4 million in property tax revenue, which is an about $69,000 increase over this year.

The city's assessed valuation has increased nearly $1.8 million to more than $36.7 million.

The Commission will hold a hearing on its intent to exceed the revenue neutral rate and a hearing on the proposed budget at their September 8th meeting.

Earlier in the public comment portion of the meeting, two city residents--Richard Tesoriero and Mitch Bruning-- voiced their concerns about taxes being increased.

Tesoriero was concerned about the impact a tax increase would have on senior citizens living on a fixed income.

Bruning said he moved back to Hiawatha from Phoenix, Arizona and is getting ready to build a new house, but does not know he wants to build a house if taxes keep going up every year.