EARLY — The Early City Council approved a preliminary budget Tuesday with $4.25 million in revenue and $3.95 million in expenditures.

The 2006-’07 budget had revenue of $3.9 million and expenditures of $3.6 million, City Administrator Ken Thomas said.

Council members also agreed to set the tax rate at 48 cents per $100 valuation, down from the 2006-’07 rate of 50.32 cents.

The council will hold public hearings on the budget and tax rate at noon on Sept. 6 and at 6 p.m. on Sept. 11, and will adopt the budget and tax rate on Sept. 25.

The budget has pay hikes of 10 percent for city employees who earn less than $25,000 a year and 3 percent for all other employees.

In other business Tuesday, council members heard a presentation from a Glen Rose events center manager or what a multi-purpose events center with an equestrian base might look like in Early.

Mike Dooley of the Dooley Management Co. said a typical events center with two arenas, 200 horse stalls, spectator seating for about 1,000 and a banquet hall would cost $6 million to $12 million to build and would generate an economic impact of $5.3 million to $7.5 million a year.

“If you’re going to build something that brings folks to town, this is one thing you can build, and you can do it for a reasonable amount of money,” Dooley told council members.

Dooley made a presentation in June to the Brown County Commissioners Court.