The Port Jefferson Village Board plans to vote next week on a $9.99 million budget that would raise taxes an average 4.48 percent.
Mayor Margot J. Garant said the board may change the budget before voting on it during a meeting that starts at 6 p.m. Monday at Village Hall, 121 W. Broadway.
The proposed tax increase would exceed the village's 1.37 percent limit under the state tax cap law. Village board members previously passed a resolution allowing them to pierce the cap.
Port Jefferson officials plan to increase spending by about 5.5 percent over this year's $9.47 million spending plan.
Most of the spending hike is related to state pension contribution increases and repairs to village beaches and a public staircase. The village also expects a $40,000 increase in contracted ambulance services, Garant said.
Village employees are expected to receive contractual raises of 1.75 percent, Garant said. A contract with the union that represents village employees expires on June 1.
Village officials said they expect to see a $10,000 increase in mortgage tax revenue -- to $270,000 next year -- after several years of decline due to falling home sales.
Officials also hope to see increased revenue from rentals at the recently renovated Village Center, and new earnings from increased fees at a skating rink that operates in the winter months.
Trustee Adrienne Kessel said the village is "increasing revenues very aggressively."
About 46 percent, or $2.8 million, of Port Jefferson's anticipated $6.1 million property tax levy is expected to be paid by the Long Island Power Authority, which has a power plant in the village.