The city of Hutto expects to propose a budget with a reduced property tax rate for next fiscal year and will hold special meetings and budget hearings through September, according to officials.

City Manager Karen Daly said the 2016-17 budget draft is scheduled to include capital improvement projects such as sidewalks for 1660 North and an animal shelter design.

The budget will also account for the absorption of two additional police officers who worked as school resource officers for Hutto ISD and will be phased out as the district incorporates its own patrol force, she said.

Hutto staff are expecting a 4 percent increase in sales tax revenue next year, Daly said.

On Aug. 13, Hutto will hold its first public hearing on the tax rate and will hold the first reading of the budget and tax rate on Sept. 3.