Norwich - A major drop in property values across the city during last year's revaluation will lead to a corresponding 42 percent jump in the city's tax rate under a proposed budget presented Monday by City Manager Alan Bergren to the City Council.

But whether or not the proposed $118.4 million spending plan will result in a tax hike for the average homeowner depends on the value of the home after the revaluation, according to City Comptroller Josh Pothier. Some may experience a decrease, he said.

The manager's proposed budget calls for a 1.6 percent, or $1.9 million increase, over the current $116.5 million budget.

Bergren said there are no layoffs planned and no consolidation of any departments. The vacant recreation director position will remain open for the time being, he said.

Under the proposed budget, the tax rate would increase from 27.23 mills to 38.66 mills. Those living in the city consolidated district would see an additional 7.39 mills, a 2.35-mill increase, for a total of 46.05 mills, The city consolidated district is an area covered by the city's paid fire department and funds $7.3 million in fire personnel costs.

Those outside the consolidated district, in areas covered by volunteer fire departments, would pay an additional .49 mills in taxes, for a total of 39.15. One mill is equal to $1 for every $1,000 of assessed property value.

Pothier said the median assessed value of a single-family home has fallen an average of 33.4 percent, from $140,700 to $94,000. If such a homeowner also owned two cars valued at $7,200 a piece, taxes would actually drop slightly - from $4,279 to $4,236 - in the town consolidated district and from $5,005 to $4,983 in the city consolidated district under the new tax rate.

One result of the revaluation is a shift in the tax burden from residential property owners to commercial property owners. Taxes for motor vehicles have also increased.

"When you have a downturned economy things kind of turn upside down," Bergren said. "You could be in a positive position, you could be in a negative position."

The manager's proposal includes $71.6 million in education spending, a drop of more than $572,000 from the latest revised school superintendent's proposal.

Bergren's proposed school budget is a 1.5 percent increase over this year's $70.5 million budget.

Bergren said he and school board members have a good working relationship and continue to work to find efficiencies.

Bergren said he has budgeted a modest, but much needed $10,000, to clean up of blighted properties throughout the city.

The budget also contains funding for Meals on Wheels.

Budget workshops with individual city departments start today.

g.smith@theday.com