City Manager Greg Horwedel is recommending that the city hold the line on the property tax rate and fees for trash pickup in the coming year.
Horwedel, in his annual review of city government, said he expects water and sewer rates to increase by about the rate of inflation, or 1 to 1.5 percent.
Horwedel was generally upbeat Monday as he delivered his annual state of the city address at City Hall.
"I believe we are seeing a modest recovery" in the economy, which is bringing in more sales tax and utility revenue, he said.
Horwedel and Mayor Dan Raulerson told a packed house at the city commission chambers that the city faces challenges but things are generally on the upswing. Horwedel outlined accomplishments of the year, along with a look ahead to 2012-13.
Highlights of his address include:
Horwedel said he was "cautiously optimistic" as the city heads into the new budget year that starts Oct. 1.