Hermantown, MN. (NNCNOW.com) - Many Hermantown residents learned they may soon see an increase in their taxes during the "State of the City Address." Mayor Wayne Boucher says the city is going to lose $95K in government aid for the 2014 budget according to the local government aid estimate. The Mayor says options to make up for the lack of funding would be to raise property or sales taxes or to possibly cut local services. In a community that does not have the basic services such as a parks or library to spare, Boucher says working with state legislators is the city's best option. "In the last four years, property taxes went from two–thirds of paying for our annual budget to 83 percent of our annual budget. We've seen this coming...we have a good six to eight months to find a solution. And with community dialogue I'm sure we can find a solution that we can all agree on," Mayor Wayne Boucher said. The mayor says the city already has a poor reputation with taxes but with Governor Dayton's budget proposal, that includes a tax on services and clothing, that may be one way to help generate revenue in Hermantown. Boucher plans to discuss options with State Representative Mary Murphy and Senate Majority Leader Tom Bakk in the upcoming weeks. Justin Reis, NNC. jreis@kbjr.com