The Ocean Shores City Council held its final public hearing on the proposed 2017 budget Monday night and then adopted one of the key elements in the document’s projected general fund surplus of about $1.5 million.

By a 5-2 vote, the council agreed to adopt its property tax rate for next year that includes a one-time 16.2 percent increase over last year’s regular property tax levy, which the city is permitted to take to make up for funds that fell short in recent years due to the devaluation of property.

The requested collection amount of $3.035 million for the general levy includes using a portion of the city’s so-called banked levy capacity — funds it may now collect next year with council approval.

The levy amount from the previous year was $2.6 million, and the additional amount from the one-time property tax proposal would constitute an increase of $425,304 “in order to discharge the expected expenses and obligations of the city and in its best interest,” the adopted ordinance states.

With the final public hearing on the overall $30 million budget, comments centered on the issue of the tax proposal.

Finance Director Angela Folkers noted the city had reached a deadline and is required to adopt the ordinance specifying its general property tax levy, EMS special levy and 2002 special levy for treatment facilities by Nov. 30.

“It’s pretty critical to approve this tonight,” she said, pointing out the council had only one more scheduled meeting on Nov. 28 before that deadline.

Former councilman John Schroeder was one of several citizens who criticized the budget process: during the public hearing “All see in this budget is spending and more spending. We need to have budget cuts. … You are taking that money and using it as a city piggy bank, and I don’t think that’s fair.”

Lillian Broadbent, on the other hand, said the increase “was really not an increase. It replaces the almost exact percentage that we lost inadvertently two years ago through a combination of an error and the drop in property valuations. I believe strongly that we need to take this opportunity to recoup that.”

Councilwoman Holly Plackett, who attended the meeting by speaker-phone, said she was opposed to the additional property tax hike and its added $425,304 in revenue to the budget, and she and Jackie Farra provided the two votes against the measure. Plackett said she did not believe the city has justified a “substantial need” for the added funds. “We have gotten along without this money for two years,” Plackett said.

“We have not talked to our taxpayers about how exactly we are going to spend this money. We are just talking about taking it.”

Councilman Jon Martin agreed to the proposal but said he had difficulty supporting it without an overall set of budget objectives and principles guiding the council. Council members agreed to draft such principles in the near future. Martin said he was concerned “we will repeat the mistakes of the past by assuming revenues will continue.”

“I understand that not approving this is no prudent for the city,” Martin said.

Councilman John Lynn also voted for it and noted the council has built its surplus up from a low of about $100,000 toward a goal of $1.5 million reserve in the general fund. The increase also would improve the city’s debt capacity, he said.

“I think it’s extremely important as we look down the line — whether or not we will ever use it — that the capacity is there in the future to be able to use and access,”Lynn said.

In other action, the council approved new contract agreements for its clerical and Public Works employees after an executive session.