Harris said the tax rate for commercial, industrial and hotel properties should increase 3.5 percent rather than 7 percent next year.

He said the city had refinanced $321 million in bonds at an interest rate of 3.9 percent — the lowest in city history — and would save $28.3 million this year and next.

Harris proposed to use part of the savings to add $1 million to the Fire Department’s annual budget and to invest $2.3 million in a "rainy day fund" to be available for any future emergencies.

He said he remained staunchly opposed to salary increases that 3,000 city employees were awarded through binding arbitration, and urged the City Council to reject the raises. The raises would cost $6.2 million next year, Harris said.

He also criticized budget cuts proposed by the City Council and said they would hurt city efforts to repair roads and sewers.

Some council members had opposed the tax increase and questioned whether Harris’ administration had effectively used money set aside for roads and sewers in previous years.

The council is scheduled to discuss the proposed cuts during a hearing tomorrow.