The hearing will begin at 7 p.m. at town hall.

With the increased assessments, the town could maintain its current revenue by reducing the property tax rate from 14 cents to 9.22 cents. The 4.78 cents difference represents an effective rate increase of 51.8 percent.

By keeping the rate at the same level, Kilmarnock will increase revenue by an estimated $108,101, according to town manager Lara Burleson.

Burleson said the town needs the additional income to offset a $278,000 shortfall in sewer fees and other lower revenue projections due to a sagging economy and decline in building.

For the current fiscal year which ends June 30, Burleson said the town has not met projections on income from business licenses and building permits and state funding has declined in several areas.

Cigarette tax revenue also is off, which officials attributed to “less consumption and slowing sales.” The town increased its cigarette tax last year.

Even with the opening of retail giant Wal-Mart, anticipated growth in sales tax revenue has not materialized. In nearly seven months since the store’s opening, retail sales in Lancaster are flat in a year-to-year comparison, according to assistant county administrator Jack Larson.

With a slowing economy, record fuel prices, and proposed increases in property taxes, the picture is very grim for most home owners. However, the county does offer some tax relief for elderly or disabled residents on low incomes and with limited assets. Contact county offices for qualifications.

Kilmarnock’s proposed fiscal year 2009 budget will come before a public hearing on Monday, May 19, at 7 p.m. at town hall.