LIVE OAK, Fla. — Despite a slight drop in the proposed millage rate, the City of Live Oak plans to provide raises to its employees in 2017-18.

At the City Council’s budget workshop Tuesday, the proposed budget for Fiscal Year 2018 included a 3 percent cost of living pay increase for all city employees — except City Manager Ron Williams.

Williams also said he plans to reinstitute an evaluation process that could net city employees up to an additional 3 percent raise.

“It was something that I felt was important that we finally get around to,” he said of the cost of living increase. “We’re looking to provide an increase to employees that they’ve been deserving of since 2011.”

Despite those raises, the proposed balanced budget will also include a slight dip in the city’s millage rate. The current rate sits at 8.925 mills while the budget proposes the millage rate at the rollback rate of 8.9132.

According to the city’s finance director Joanne Luther, the city also saw a decrease in property values.

“That’s important because our assessments were down slightly,” Williams said. “Overall, the property assessments in the city were down slightly, not a lot, but they clearly did not grow as we had hoped they would.”

That is a battle the city is trying to fight as it looks to build up the reserves in its general fund.

“We’re growing the general fund slightly,” Williams said. “We’re looking to live within our means.

“It’s a budget we can live with.”

Helping offset that dip in property values, though, will be the continued implementation of the rate increases for the city’s services. Luther said the second phase of that rate increase should be seen on residents’ November bill.

Most of the city’s capital improvement plans included in the proposed budget are for updated equipment. Williams said the city’s fleet average is 13 years old and he hopes to nibble that down.

“We’re making positive strides within our means,” Williams said, also pointing out the city is budgeting a 2 percent drop in expenses. “I think we’re becoming more efficient.”

The council will hold another budget workshop at 4:30 p.m. Tuesday.

“Councilmen, I’d like everybody to take this budget home and digest it,” Council President Bennie Thomas said. “And then let’s come back and discuss the changes or the needs.”

The council’s first public budget hearing will follow the workshop at 5:30 p.m. Tuesday during the regular council meeting.

The final budget hearing is set for Sept. 26.