- Associated Press - Thursday, May 22, 2014

DOVER, Del. (AP) - Officials in Dover are looking at filling a nearly $2.2 million budget gap with the largest tax hike in years.

The proposed 7-cent tax increase would be a 21 percent bump for property taxes and could cost homeowners $36 to $172 more annually.

At a special meeting on closing the budget gap Wednesday, City Manager Scott Koenig suggested increasing the groundwater surcharge to 45 cents per gallon and doubling rates for water and wastewater to $2.50 to help offset the deficit.

Meanwhile, officials are looking at pay increases and bonuses. The city’s $39 million recommended general fund budget includes a 2-percent pay increase, plus $1,250 bonuses, for each of the city’s 11 department heads. It also includes a 3-percent raise for non-bargaining employees.

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