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The City Council introduced its tentative budget for fiscal 1988-89 in a public hearing this week, proposing a $80,000 budget increase over last year's plan but with no tax hike.

Total expenditures for the proposed budget are $1,092,350, according to City Administrator D'Arcy Dixon Pignanelli.A 3 percent cost-of-living pay increase and a 3 percent performance-based increase would be budgeted for all full-time city employees under the proposed budget, according to city records.

Property tax rates remain at .0001383 under the proposed budget, while an increase in water revenues would be supported by a 26 percent increase in water rates recently approved by the council.

The water-rate increase would produce an additional $75,000 for city coffers under the proposed budget.

"It's a conservative budget," Dixon Pignanelli said, adding that the water- rate increase was the only revenue increase.

In other matters, the council considered suggestions from citizens for use of $55,000 in community development block grant funds, federal money designated for low- and middle-income areas in a municipality.

The Riverton Elementary Community Support Group told the council the group wanted to see some of the money go toward building a sidewalk in the 1830 W. 12960 South area. The area is frequented by students walking to school who now are forced to walk in the street, the group said.

Additionally, Riverton City firefighters proposed that some of the funding be set aside for the recently opened Riverton City fire station.

The council said it would consider both proposals, as well as solicit suggestions from other school support groups, at its next meeting.