For the first time in three years, property tax rates will increase in the city of Boston in fiscal 2010.

The average bill for a single-family home is expected to increase by $173 to $2,935, up from $2,762 in fiscal 2009.

"Reductions in the city’s other revenue sources – most notably state aid – leaves the city little choice but to increase the property tax levy by the maximum allowed under Proposition 2 ½," according to a statement from Mayor Thomas Menino’s office.

The mayor’s office also noted the tax rate will be lower than in 2008, when the average bill was $2,949.
In fiscal 2010, the tax rate for residential property is expected to be $11.88 per thousand dollars of valuation, up from $10.63. The rate for business properties is expected to be $29.38 per thousand, up from $27.11.

The total tax levy is $1.465 billion, an increase of $65 million over last year, according to the city.

Residents will receive bills for the third quarter at the end of the month, and must be paid by Feb. 1.