WEST PALM BEACH - The city so far is sticking with its proposal to increase its property tax rate by 16 percent.

The proposal would set the rate at $9.1536 for each $1,000 in taxable property value, compared with the current rate of $7.8748.

But despite that double-digit rate increase, the city would stand to collect $2.2 million less than it did last year. That's because property values have slumped by 18.7 percent citywide.

The city commission voted last week to seek additional budget cuts rather than exceed that $9.1536 rate when it finalizes its budget in September. Between now and then, the administration will need to lop off another $6.4 million from departments' budget requests; $10 million has been cut to date.

"We are working hard to not cut back on important city services," Mayor Lois Frankel said today.

Under the proposed tax rate, some property owners would pay less than last year, but many would pay much more.

Here's how the change could affect homesteaded properties worth $250,000 this year:

With rising assessments: Many homesteaded homeowners will see their assessments rise by a state-mandated 0.1 percent this year, as long as the assessed value remains less than market value. In this case, the hypothetical owner would pay $1,833 to the city next year, up 16.4 percent.

With falling assessments: Others, including some who bought at the peak of the real estate boom, could see their assessments drop sharply. For example, with a decline in assessed value of 18.7 percent - the citywide average - the hypothetical homesteaded owner would pay $1,403 next year, down 10.9 percent.

Those calculations assume a $50,000 homestead exemption. The tax rate includes city debt service, but not taxes paid to Palm Beach County, the school district or other agencies.