DANVILLE — Mayor Scott Eisenhauer presented a proposed property tax and budget proposal Tuesday night that used only parts of previous scenarios given to aldermen to cover a $1.7 million budget deficit and start building general fund and infrastructure fund reserves.

The proposed 1 percent sales tax increase would generate about $1.9 million the first year; a 2 percent municipality utility tax on natural gas and water with an annual cap of $10,000 for businesses would generate about $695,000 the first year; a $10 to $25 rental registration fee would generate about $90,000 next year instead of $60,000; the food and beverage tax would be reduced by 1 percent, with revenue declining from $1.1 million to $575,000; and Eisenhauer also recommended reducing various budgets through a third-party review and implementing $35 per month contribution toward health insurance for non-union single em-ployees with no dependents. Family and dependent coverage will be evaluated in more depth later.

This doesn’t include a possible 2- to 8-cent per $100 of assessed value property tax rate increase, largely due to police and fire pensions.

The property tax levy would increase from $6.9 million to $7.2 million, which is a 4.7 percent increase. The rate could increase from $1.88 to $1.96 for each $100 of assessed value.

With all of this, the city then could start to earmark more money for a general fund reserve — $1 million for a three-year total; transfer $660,000 during a three-year period to an infrastructure fund to help pay for the Fairchild Subway work and other projects; and propose no more new revenues during the next three years.

No parks would be closed. Property inspections wouldn’t cease. The city will still be able to offer the same services.

Ward 6 Alderman Jon Cooper said he was pleased with the recommendations, “if that’s what it takes.”

Ward 7 Alderman Ron Candido said if he had to vote now for the tax levy, he’d approve it.

But Ward 1 Alderman Rickey Williams Jr. said he’s not sure three tax increases are “absolutely necessary” now. He still favors more cuts before a utility tax. Aldermen were concerned about a utility tax hurting businesses.

But the city would create its own local rebate for businesses on the utility tax. The cost to the city is estimated at about $300,000 a year for a business utility tax cap of $10,000.

Utility tax projections show that individual industries will pay amounts such as $306; $3,604; $32,776; $72,400; and up to $173,970 extra annually with the taxes. Eisenhauer also pointed out the natural gas and water taxes would cost the average citizen about $38 more a year.

The aldermen also heard from four landlords opposed to the originally proposed $100 rental registration fee increase. They said it was unfair and tenants would suffer, but they also proposed removing the cap.

Aldermen will vote on the tax levy next month.

Also Tuesday, aldermen approved moving forward a proposal to the full city council next week to change the weekly yard waste program to bi-weekly and increase the $10 toter sticker to $20. The bi-weekly program would have a few weeks of weekly collection in the spring and fall during heavy leaf and yard waste collection periods, at which time bags also would be allowed.

About 48 percent of the total annual program cost of about $252,000 would come from the program itself. The $134,290 balance would be covered by the current monthly garbage fee (about $1 per month per customer).

Aldermen also talked about recycling options and possibly providing containers to WITS.

Candido said he thinks it’s sad the county would not give its landfill surcharge fee to the city to help partially pay for recycling to continue.