TECUMSEH, Ont. -- Tecumseh residents could see their taxes rise in 2020.

Council was presented with a proposed 2020 business plan and budget at its meeting Tuesday.

The municipal portion calls for a 0.4 per cent levy hike, but when combined with the education and county levies – the proposed tax hike is 3.1 per cent.

That overall increase would work out to $123 more for a home valued at $250,000.

Mayor Gary McNamara tells CTV News an increase in home values has helped the budget.

"When we look at the new assessment, there's a 14 per cent increase in value of properties," says McNamara. "We basically lower the tax rate to compensate because what we're looking at is the actual dollars we need to operate within the next year."

McNamara adds two projects contribute to the tax increase – the expansion of the town hall and the new multi-use Sportsplex.

There is also $2.9 million in sewer upgrades proposed for Tecumseh Road.

"Every year we're spending a lot of money. We've certainly felt the wrath of Mother Nature in 2011, 2016 and 2017," says McNamara. "Although we've seen the lake levels drop, we're not out of the woods. We've got a winter to go through and look at the amount of snow we've gotten already."

Budget deliberations will begin Nov. 19 and council hopes to have the budget approved by Dec. 10.