Brownwood City Council members have started their yearly August ritual of reconciling requests from department heads with projected revenue and creating a balanced budget for the new fiscal year.
The council got its first look in a Thursday workshop at a preliminary budget, developed by city staff, that shows a $996,802 deficit: $27.45 million in projected revenue, and $28.45 million in projected expenses.
Council members will work at balancing the budget in workshops Monday, Tuesday and Thursday.
The preliminary budget projects a revenue increase of $1.19 million, or 4.5 percent, from the 2006-07 budget. Preliminary expenses show an increase of $2.1 million, or 8.3 percent, from the current budget.
The preliminary budget includes a 3 percent cost-of-living pay raise for city employees, and an additional 2 percent raise for the police and fire departments.
Factors in the increase in projected revenue include:
Sales tax $4.4 million, compared with this years $4.1 million. Property tax $3.8 million, up from $3.5 million Landfill revenue $2.1 million, up from $1.8 million. PILOT payments $1.3 million, up from $1.1 million. Sewer revenue $3.4 million, up from $3.2 million.
Factors in the increase in projected expenses include:
3 percent cost-of-living increase $298,350. Meet and confer with the police and fire departments $43,000 for the police department and $28,000 for the fire departments. Cash reserves $200,000 to begin addressing daily cash coverage as a permanent part of the budget. Landfill excavation $200,000, up from $50,000. Water cost - $98,800, because the water improvement district is increasing the direct cost of water by 6.2 percent. Water district bond payments $684,000, up from $30,000. The water district will be passing though its bond payments to the city for improvements to the water treatment plant. Code enforcement demolition $100,000, up from $35,000. Street repairs $500,000, up from $330,000. Inflation $411,649.