ABSECON — The municipal tax rate would go up by 3.6 cents under a $9.8 million budget introduced Thursday night by City Council.

   Nearly 95 percent of the increase is due to the state-mandated fund the city must collect to make up for taxes that were not collected in 2009, Council President Lynn Caterson said. Many of the taxes owed were collected in early 2010, but the state requires that the budget make up for all payments not made by Dec. 31.

   The budget means that the owner of a home assessed at $100,000 would pay $36 more for municipal services this year than he did last year.

   Still, Absecon is in much better shape than other towns, Caterson said.

   “The police force stays in full effect,” she said. “We have no furloughs, no layoffs” and no cuts in city services.

   Caterson and other council members praised their predecessors for good planning in previous budget years, leaving the city in good financial shape.