City property owners may see a 4-mill tax increase this year.

The proposed tax hike would mean an annual property tax increase of $16 on a home valued at $100,000, Gaffney City Administrator James Taylor told Gaffney City Council during a budget workshop Monday.

Any millage increase for city taxpayers is capped at 4 mills, according to a new state law that limits tax increases to the Consumer Price Index and the city's population growth.

After trimming the budget requests, Taylor said the city still faces a $143,000 deficit.

Taylor asked council to consider keeping its hiring freeze in effect, eliminating capital expenditures from the proposed budget and raising taxes as options to balance the 2007-08 budget.

Real estate revenues increased this year, but not enough to offset a drop in vehicle tax collections, he said.

The proposed budget includes a 3 percent cost-ofliving raise for city employees as well as capital expenses for six new police cruisers and trucks for the maintenance and public works departments.