Butler County residents could see their taxes go up by 3 mills next year.

The proposed $150.7 million budget for 2016 has a $4.4 million deficit.

Chief clerk Amy Wilson presented the budget at Wednesday’s county commissioners meeting, and said the county has operated for decades with a structural deficit, and that is the case next year.

“Once again, our expenses exceed our revenue,” Wilson said.

The total budget is $150.7 million, and Wilson noted that contains several funds. She said the deficit is in the general fund budget.

The projected general fund expenses are $61.7 million. However, she said it only is expecting $53.9 million in revenue. Part of that can be plugged with $3.3 million from the county’s operating reserve, which Wilson said is a projected figure. Once the $3.3 million is removed, Wilson noted that the reserve fund will have a $0 balance.

“We need to bridge the gap and begin to refill our reserves,” Wilson said.

The remaining deficit would be covered by the tax increase.

The current tax rate is 24.6 mills, with 3.9 mills for debt service. The proposed rate is 27.6 mills. A mill generates $1 in tax for every $1,000 of a property’s assessed value.

Wilson said that the average homeowner would see a $65 increase in his tax bill. She said the county’s property tax accounts for only 16 percent of a person’s total tax bill. Eight percent of the bill is for municipal taxes and 76 percent is for school taxes.

She said the tax increase would generate $62.4 million. The $700,000 left over after plugging the deficit could be placed in reserves, Wilson said.

Wilson said that the cost of doing business increases every year. She said the county’s tax base is growing, but not as much as in years past. Gas royalties on county properties were $70,000 this year — down from $507,000 in 2014. Revenue at the county prison is down by 9 percent due to regulations reducing the number of federal inmates there. Additionally, the costs of health care is going up.

Commissioner Bill McCarrier, board chairman, said the current and past commissioners have not increased taxes “to a proper level” and have continued to take money out of the fund balance — without being able to put much back into it.

“This is not good,” McCarrier said.

Even with an increase, McCarrier said the county’s taxes would be lower than surrounding counties.

For a $150,000 house, McCarrier said the county property tax paid is $553. In Allegheny, he said it is $731. He also said it is $967 in Armstrong and more than $1,000 in Beaver.

Commissioner Jim Eckstein said that he would not vote for an increase.

“We’re taking a lot of money out of people’s pockets,” Eckstein said.

He said he did the math and found $2.4 million in extra revenue that could be reported in the budget. He also said the budget does not address many issues, such as travel expenses.

Eckstein also said he was skeptical as to whether there would be $3.3 million in reserves.

Commissioner Dale Pinkerton said the board could increase taxes less, but that would leave the new commissioners who take office in January with problems.

“It’s something that we need to do,” Pinkerton said.

Four years ago, he said commissioners increased taxes by 1 mill. He said he wanted the increase to be 2 mills, saying that the county might be in better situation right now if that had been the case.

He said commissioners reduced debt by $12 million during the past five years.

“We have worked really hard at doing the right thing,” Pinkerton said.

Commissioners will vote Dec. 30 on the budget.

The current budget is $183.2 million with the 24.6 mill tax rate. Wilson said she is not certain what caused the decrease from $183.2 million to $150.7 million for next year.