The Danbury City Council is holding a public hearing tomorrow night on the proposed budget. The Superintendent's budget request, approved by the Board of Education, asked for an additional $8.7 million in annual local funding. The budget proposed by the Mayor includes $4 million in additional dollars. If the overall $277.5 million budget is approved as is by the City Council,  mill rate would go up 2.25  percent if approved.  With a mill rate of 28.22, the typical homeowner will see a quarterly real estate tax bill that is about $40 higher.  Sewer and water rates would increase by 2.75 percent.   Tomorrow's hearing is at 7pm in Council Chambers of City Hall.