PORTSMOUTH, Va. (WAVY) — Portsmouth leaders are proposing an increase in the water, sewer and stormwater rates for the upcoming fiscal year.

Portsmouth Interim City Manager LaVoris Pace gave a presentation to City Council Monday night on the proposed fiscal year 2022 budget.

This year’s $252.6-million budget is actually $1.3 million, or .52%, less than last year’s budget.

For the sixth year in a row, Pace is not recommending any increase in real estate tax, which currently leads the region at $1.30 per $100 of the assessed value.

The proposed budget also includes a proposed 3% pay increase for city employees and a $2.1-million increase in funding to Portsmouth City Schools compared to the previous year. Pace recommends $58.8 million in funding for the school division in this year’s budget.

There are some rate increases proposed that would start July 1 if approved: A 75-cent increase in stormwater rates and an annual 5% increase for water and sewer rates.

Both these rates also increased last year.

Pace’s staff says the increase in water, sewer and stormwater rates could help fight flooding and allow for maintenance of existing infrastructure.

“I remind you that these are estimates that we are proposing in an ever-changing environment. While we are very hopful from which we’ve come during this pandemic,” Pace said Monday.

Pace says putting this budget together was truly a team effort.

Portsmouth City Council will hold several public hearings on the proposed budget plan on April 13 and April 27.