A proposed Fond du Lac city budget includes a slight increase in the tax rate. The budget released Tuesday includes a 2.5 percent increase in the tax rate. The property tax levy is up 4.6 percent from $22.8 million to $23.9 million. City manager Joe Moore says the increase is driven primarily by an increasing debt payment and a nearly 1.5% increase in net new construction. The budget also includes an estimated 6.9 percent increase in water utility rates for the typical residential customer. The city is using more than $1 million from its general fund balance. New expenditures in the budget include $100,000 for a new home ownership incentive loan program, $20,000 for a Lakeside Park master plan and $60,000 for a Public Works Street lighting electrical conduit update. The entire budget can be found on the city of Fond du Lac’s website.