Chandler is raising its property tax rate for the first time in 17 years.
The decision came Thursday night when the City Council approved the tentative $676.5 million budget for 2011-12 on a 6-1 vote.
But Mayor Jay Tibshraeny says Chandler residents will be paying less because real-estate values have declined so much.
The Arizona Republic reported that with the approved increase, Chandler's municipal property tax rate will go from $1.18 per $100 assessed valuation to $1.27.
But Tibshraeny says this year's rate increase will translate into a 7.5 percent decrease in the average homeowner's tax bill.