Chafee proposes budget, tax increase *The budget, 5.6 percent higher than this year's, requires residents' health insurance to pay for rescue services, uses $1.7 million of the city's surplus and requires a property tax rate increase of 82 cents per $1,000 of assessed value.

Chafee has proposed a city budget of $158.7 million, 5.6 percent higher than the current budget. He plans to finance the budget increase with $1.7 million from the city's surplus, $900,000 collected in new city rescue fees and $2.9 million in new taxes.

The new budget is to be ready for public distribution Friday at the city clerk's office. Chafee's office disclosed highlights yesterday.