City Council is expected tonight to adopt a proposed $21 million budget for 2013 that raises real estate taxes by 1 mill.
The increase is equal to $100 more per year for a household assessed at $100,000, said Mayor Gabriel J. Campana.
The increase was confirmed Wednesday by Joseph Pawlak, city fiscal and budget officer. The tax rate is expected to be set at 11.58 mills.
The proposed budget reduces the police department by three officers and the Streets and Parks Department by two employees.
The city faces an additional $1.7 million in costs associated with paying pensions of employees, said William E. Nichols Jr., director of finance.
On Wednesday, Nichols said he expects a 17-percent increase for insurance costs next year. The insurance covers workers' compensation, liability, property and automobile.
Workers' compensation insurance is expected to rise by $50,000, Nichols said. Major medical insurance costs are anticipated to increase by 11 percent, and cost the city about $500,000 more, he said.
Council also reviews certificates of appropriateness for Community Basket, 449 Hepburn St., and Barry L. Eck, 341 Academy St.