Gainesville residents may pay higher taxes next year as city officials consider raising the tax millage rate to maintain services and increase pay for city workers.Gainesville City Manager Kip Padgett presented his recommended fiscal year 2013 budget on Thursday at the Gainesville City Council work session. The recommended budget will be the starting point for the budget process, with City Council getting the final say.The $28 million general fund budget proposal — a 2 percent increase from the fiscal year 2012 budget — recommends a roll-up of the millage rate to cover the projected 7 percent decrease in the tax digest.Millage rate is the multiplier to determine what a property owner pays in taxes, with 1 mill equaling $1 for every $1,000 of taxable value.The projected decline in property values follows a 9 percent decrease in property tax revenues from the previous year. City officials also say increases in fuel and electricity costs are putting constraints on the budget.A millage roll-up adjusts the property tax rate to a point where the city collects the same amount from the previous year.“It’s meant to be revenue neutral based on total assessed value,” Padgett said.Although the roll-up moves the millage rate up, it is not legally considered a tax increase since the total revenue remains the same.Based on current estimates, a roll-up would increase 0.08 mills for the general fund tax, 0.04 mills for Parks and Recreation and 0.02 mills for debt service.However, Padgett said those numbers could move up or down depending on final digest numbers expected in August.While City Council had some questions about how the roll-up would work, none spoke against it on Thursday.“I support it 100 percent,” Mayor Danny Dunagan told The Times.