CAMBRIDGE — Cambridge city officials are asking council to approve a 3.04 per cent property tax increase for 2015, which would represent the highest property tax hike in the region this year.

Officials say they need at least a 1.65 per cent increase to keep basic service levels intact and the rest to grow the city's staff complement and cover the impact of new capital projects.

The proposed increase would mean the average homeowner in the city living in a home worth $281,000 would pay $36.51 more in property taxes in 2015, bringing the average property tax bill in the city to $3,544.89.

"If you look at the average cost of a home here in Cambridge, the tax increase equates to 10 cents a day," said Mike Mann, Ward 3 councillor and chair of council's budget task force.

City chief financial officer Steven Fairweather added that when you combine the region's three cities' proposed property tax increases with their respective sewer and water rate hikes for 2015, Cambridge's increase looks more modest.

An average Cambridge resident will pay a combined $79 more this year for property taxes, water and waste water fees, while an average Kitchener resident may pay $103 more this year for the same thing.

If approved, the more than three per cent increase represents the highest property tax hike the city has seen since 2012. Property taxes in Cambridge increased by 1.6 per cent in 2014 and 1.78 per cent in 2013.

Waterloo proposed a 1.5 per cent tax increase for 2015, while Kitchener staff asked council for 2.25 per cent.

Staff wants to spend a total of $175.5 million in 2015, $111.7 million on operating costs and $63.8 million on capital projects.

Cambridge chief administrative officer Gary Dyke said staff originally brought a series of budget requests to senior staff that called for a 7.5 per cent property tax increase.

"We made cuts and adjustments," Dyke said. "From then until today, we've cut the (budget) requests by $3.3 million."

Still included in the 2015 proposed budget are ideas raised by Cambridge Mayor Doug Craig in recent speeches, including $75,000 to mount lights on bridges in Galt and Hespeler each night and a $25,000 grant to help pay to rebuild the Haven House women's shelter.

About 1.6 per cent of the property tax hike is needed to fund salary and benefit increases mandated by collective agreements the city signed with its various groups of workers.

The budget calls for the equivalent of hiring of six new full-time workers.

The city's proposed 10-year capital forecast includes $6 million raised by development charges to buy land to host a new sports complex many residents say the city desperately needs.

It also includes more than $6 million for projects aimed at bringing people closer to the Speed and Grand rivers, including a "street scaping" of downtown Hespeler, a new pedestrian bridge across the Grand River in Galt, and river walkway improvements.

The city also expects to build a new fire station starting this year at a cost of about $3 million, funded entirely through development charges.

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Ward 1 Coun. Donna Reid said she'll emphasize the proposed budget's ability to keep up present levels of road maintenance, snow clearance, and other daily functions people tell her are important.

"The majority (of new money) is where it should be — in roads and buildings. That's what I'm hearing from my constituents. They say they're worried about the roads, snow plowing, and that's what's important to them, rather than some big project."