(KNZA)--The Hiawatha City Commission has approved for publication a proposed 2017 budget of nearly $6.5 million that calls for about a 1.6 mill property tax levy increase.

The Commission took the action during their regular meeting Tuesday evening.

The proposed budget contains a property tax levy of 54.058 mills, which is to raise nearly $1.2 million in tax revenue.

City Administrator Mike Nichols attributed the property tax levy increase primarily to increased employee health care costs.

The Commission will consider adoption of the budget following a public hearing at their July 18th meeting.