The Rugby Public School District is proposing a 5.66 percent increase in property tax levies.

The total mill levy for the 2016-17 budget would be 120.5 mills, however the district also carries about $7.8 million in bond indebtedness since July 1. Last year, the district levied 118.93 mills.

The increase in tax levies for the proposed 2016-17 budget would amount to $542.25 on $100,000 of residential property. The amount would be an increase of $7.07 from last year’s tax amount ($535.18).

The district projects that over 28 percent of revenues for the 2016-17 fiscal year is to come from local sources, and over 67 percent from the state of North Dakota.

The district projects that education would take over 66 percent of its general fund expenditures. The next largest general fund expenditures would be maintenance (8.55 percent), administration (8.23 percent) and transportation (7.44 percent).

Salaries and benefits is expected to be the largest in terms of percentage of expenditures with 76.73 percent. Travel (12.85 percent), supplies and energy (6.67 percent) and equipment (2.44 percent) make up the other expenditures.

A public hearing to consider increasing the tax levy will be held Thursday, Sept. 29, at 7 p.m. in the Rugby High School library.