The Canton City Council will consider approving higher taxes next month, although the mayor already is voicing his opposition.

The council voted Thursday night to schedule a public hearing to set the millage rate at the "revenue neutral rollback" level of 7.4 mills, up from the current rate of 6.8 mills.

A date for the hearing and vote had not yet been scheduled as of Friday afternoon.

The rate increase isn't needed to cover known expenses, as the council on Thursday night approved a balanced $31.2 million budget based on the rate of 6.8 mills.

Instead, the rate increase would allow the creation of a formal reserves fund to cover unexpected expenses throughout the budget year, which starts on Oct. 1.

The city has $500,000 in a cash contingency fund, but no other savings.

About $1 million was saved up in the water and sewer fund, but it's being used to cover a shortfall in the upcoming budget year. While a water and sewer fee increase isn't needed to balance the budget, the rates will be evaluated by an outside company to determine if they are too low to maintain.

The vote to approve the budget was 5-1, with Councilwoman Pat Tanner opposed. She had made a motion initially, which was defeated, to both approve the budget and call for hearings on a millage rate increase.

The vote to schedule a public hearing for the millage rate increase was 5-1, with Councilman John Beresford opposed.

An owner of a $200,000 house with a standard $5,000 exemption paid a $510 city property tax bill last year.

Most property owners saw a decrease in value this year, but if that same homeowner's property value was unchanged, the bill would jump to $555 under the proposed rate.

If the property dropped 8.35 percent in value, the county average, the bill would be $505 under the proposed rate. If the rate stayed at 6.8 mills, that homeowner would pay $464.

Council members said they're reluctant to raise the rate, but can't take the option off the table yet.

"I want to look at it first," Councilman Jack Goodwin said, noting he's concerned because the proposed budget is so tight.

Councilman Bob Rush said he wants to consider it because of the city's economic situation.

"We just don't have any real reserves," he said, referring to the city's lack of a formal reserves fund.

The majority of the council is taking the same stand, but Mayor Gene Hobgood said he is "100-percent" opposed to raising the millage rate.

He said raising the millage rate to 7.4 mills would generate $400,000 to $450,000 in additional revenue, a total that he doesn't think justifies an increased burden on residents.

"We ought to give them every break we can if we can make it," Hobgood said.

Hobgood said residents are facing tough times and referenced recent comments made by Ball Ground Mayor Rick Roberts about the negative perception residents have of such tax-rate increases.

"I would hate to see us pump money in just to spend it," Hobgood said. "I don't understand why we would even contemplate hitting the taxpayers up again."