The Gering council also approved next year's budget during last night's meeting.
The city's $31.8 million budget faced no opposition from council members.
The city's property tax levy will remain the same for fiscal year 2013, but the city will increase the its restrictive fund by an additional one percent.
Councilor Jill McFarland says that money comes primarily from state and property taxes.
"The reason that limit is in place is to assure that no community would increases your property tax by 12, 15, 20 percent. We are allowed an additional one percent for a total of 3.5% doesn't mean we have to use those funds in the current year."
The city is also contemplating an approximately six-percent utility hike to keep up with rising costs.
