If he had his way, Defiance Mayor Bob Armstrong would ask city voters to approve a .3 percent, permanent income tax increase in August. While Armstrong made his case for that route during councils meeting Tuesday, a member of his administration urged flexibility about what kind of an issue is placed before voters this year. Also, council let lie an ordinance approving the 2004 budget after a second reading and took action on two other legislative items before meeting in executive session to discuss threatened litigation. The mayor is touting his tax increase proposal as a way to make City Hall solvent.