NATCHEZ &045; Without further comment, aldermen on Tuesday set a hearing for 5 p.m. Sept. 29 to give the public a chance to voice opinions on a proposed tax increase of 5.5 mills.

The city must hold such a hearing before adopting its budget for the fiscal year that starts Oct. 1.

That increase would bring in about $522,500 for the city and would include 2.575 mills to fund the library and 1 mill to fund the Economic Development Authority, freeing up some of the general fund money the city now uses to fund those agencies.

Without the increase, city officials said they expect a shortfall of about $800,000 for the upcoming fiscal year due to such things as the increasing cost of insurance, utilities and fuel.

The proposed 5.5 mills would be an increase of $55 per year on a house assessed at $100,000.

In addition, aldermen are considering raising garbage fees $2.50 a month per household and not filling two vacant Fire Department positions and two vacant Police Department positions.

Aldermen are also counting on a 3-percent increase in sales tax revenues.

Such adjustments and projects would give the city an estimated $927,500.

Revenue above the amount needed to plug the shortfall could be used to pay debt service increases on the convention center in future years and the possible construction of recreation facilities, such as a swimming pool.

In 2000, the city raised millage from 33.033 mills to 37.232 mills. The millage increase that year was dedicated to debt service.

The last increase before that year was in 1986, when millage was raised from 25.435 mills to 33.033.