PORTLAND — City Manager Joe Gray released a $196 million municipal budget proposal today for the fiscal year starting July 1 that calls for a combination of service reductions, revenue changes and a 1.4 percent property tax increase.

Gray will officially present the budget to the City Council at 7 p.m. Monday in the council chamber at City Hall.

The proposal includes a number of revenue changes and service reductions that are driven by the continued recession and reductions in state aid. It would result in a proposed 1.4 percent property tax rate increase to raise $900,000. The proposed combined tax rate increase for both city and school is 1.3%, which for a home valued at $250,000 means a total tax increase of $58.

The FY11 budget calls for a number of revenue changes including the elimination of the city’s Parking Ticket Forgiveness Program (revenue increase of $520,000), as well as the First Hour Free program at the Elm Street and Spring Street garages (revenue increase of $140,000) and a $.25/$.50 price increase for the city’s blue trash bags (revenue increase of $350,000).

Service reductions range from the elimination of Thursday evening hours for the Treasury Division, a reduction of sidewalks identified for snow plowing, the closure of the city’s in-house print shop and adoption of a “paperless” policy for city operations, maintenance of minor parks will occur less frequently, the closure of library branches at Reiche, Riverton and the East End School, and the cancellation of this year’s 4th of July fireworks celebration.

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