ARLINGTON — The Arlington City Council expressed reservations Oct. 19 about whether to accept a staff recommendation that the city not increase property taxes for 2016.

The city is allowed to increase its property taxes by either 1 percent or by the rate of inflation. For 2016, the inflation rate is set at 0.251 percent.

This is only the third time since 1998 that the inflation rate has fallen below 1 percent.

Finance director Kristin Garcia recommended not only that the general fund property tax be increased by zero, but also that the city preserve its capacity to take a banked 1 percent increase in the future.

By contrast, Garcia proposed that the city take a 1 percent increase on the Emergency Medical Services property tax levy.

The council would need to declare “substantial need,” both to bank its 1 percent capacity for the general fund and to exceed the inflation rate of 0.251 percent for the EMS levy.

“A statement of substantial need, is that a challenge to draft?” council member Austin DeFreece III asked.

“No, it entirely up to the council to decide,” Garcia said. “There’s no test to it.”

Council member Jesica Stickles wondered whether banking the general fund increase for 2016 would allow the council to increase it by 2 percent the following year. Garcia confirmed that this was the case, and even agreed with council member Chris Raezer’s assessment that the compounded interest could allow for an increase of potentially more than 2 percent.

When Raezer and council member Debora Nelson asked why the city shouldn’t take at least an increase of 0.251 percent for the general fund, city administrator Paul Ellis reminded them of the recent increase in property taxes due to the levy lid lift.

“We have several departments in need here,” Raezer said.

“It’s not like we’re rolling around in money here,” Nelson said. “As long as we’re funding things efficiently and thinking prudently, I don’t see why it can’t be done.”

Council member Jan Schuette echoed their assessments, asserting that a property tax increase of 0.251 percent would not be that much when distributed among individual property owners.

Garcia and Ellis agreed to present alternative versions of the budget during the council’s Oct. 26 workshop.

The council is slated to vote on the budget Nov. 2. Because hearings on the budget and property taxes were conducted Oct. 19, no further hearings are required.