WINFIELD TWP — Residents will see a 2-mill increase in their property taxes next year.

Winfield supervisors Thursday approved a nearly $663,000 budget for 2016 with a property tax rate of 5 mills. This is a 66-percent increase from the current rate of 3 mills.

A mill generates $1 in tax for every $1,000 of a property’s assessed value. The average property owner’s tax bill will increase by $40. The average township tax bill there is $90.

“We did not arrive lightly at 2 mills,” said Supervisor Matt Klabnik, board chairman.

The increase is a part of a seven-year capital improvement plan and is supposed to allow the township to transfer more funds into a capital improvement fund and into reserves — allowing it to take on more projects, update infrastructure and pay less interest.

Resident Scott Burns said the tax increase was too large.

“You guys can’t get away with 1 mill?” Burns asked.

Klabnik noted that even a 1-mill increase would amount to a 33 percent raise, which also seems to be large at first. He said the added charge to someone’s tax bill would amount to about 1.3 percent of the bill.

Supervisor Mike Robb agreed that the monetary amount is smaller than the percentage figure suggests.

“It’s perspective,” Robb said.

Township secretary Adam Hartwig said a 1-mill increase could fix some things, but said it is not sustainable over time.

“Two mills is sustainable,” Hartwig said.

He said the current tax rate is not sustainable for Winfield, with costs increasing. He said the township seal coats its roads because it cannot afford to pave them.

A couple of residents noted that the township has carry-over funding at the end of each year and claimed that those funds added up to $400,000 in extra funds.

However, the supervisors said the funds do not add up to that much money, but rather are spent during the first part of the following year, leaving a similar amount leftover at the end of that year.

Klabnik said the carry over is similar to the money left in a person’s checking account shortly before their next payday.

Supervisor Glenn Nagle said if the township did not have carry-over funds, it would not be able to survive the first part of the following year, since its first tax checks do not arrive until April 1.

Robb agreed and noted that carry over is operating cash, not profit.

The 2015 budget is $616,000.