A $7.5 million new year city budget approved Monday includes nopay raises for elected officials and most employees and no tax levyincrease for property owners.

The budget, which begins Oct. 1, anticipates $6.88 million inrevenue and $7.56 in expenditures. Following a few final budgetchanges last night, an estimated $650,712 in carryover funds willbe needed to balance the budget.

City Clerk Iris Rudman-Smith said the carryover fund balancecould absorb the deficit. She said the city is in good shapefinancially.

“We are not going bankrupt. We are not losing our funding,”Rudman-Smith said, adding that she had kept a close watch over cityrevenue and expenses during her 19 years in office. “We’ve neverhad a problem making the budget.”

The tax levy to support general fund operations will remain at23.08 mills. Next year will be the third year in a row the levy hasbeen at that level.

Including debt service on bonds and solid waste services, thetotal levy for city operations will be 32.55 mills.

“We do a lot on 32.55 mills,” Rudman-Smith said.

The tax levy for city school district operations, though, willbe going up 1.83 mills from 58.14 to 59.97. The increase, whichwill mean about $18 more a year on a $100,000 home, was due mostlyto a change in the district maintenance levy.

While 3 percent pay raises for all employees and electedofficials were considered, board members Monday rejected that plan.Board members had indicated they would have excluded themselveseven if employee raises were given.

“We may want one, but there’s too many things going on,” saidWard 5 Alderman Tom Smith.

Following a meeting last week, budget writers added $285,000 fordepartment equipment requests. Other equipment requests could beaddressed by revising the budget during the upcoming year.

The budget also includes raising the city’s starting pay to $7and increasing current employees making less than that to thatlevel. Solid Waste-Trash Coordinator Willie Smith was approved fora $200 a month increase after he did not get a raise when he waspromoted.

Several aldermen applauded the unanimous budget approval. Ward 3Alderman the Rev. Jerry L. Wilson was not present last night and anill Mayor Bill Godbold was unable to attend.

“I think we made some good decisions in the budget,” said Ward 6Alderman John E. “Buddy” Allen.

Ward 4 Alderman Bob Massengill said the board tries to spendtaxpayers’ money carefully and wisely. Ward 1 Alderman DorseyCameron followed that with a retort against those who believe theboard is not being watchful of city funds.

“The ones who don’t think we do need to run for office and findout,” Cameron said.

Among budget changes last night, aldermen approved a newinsurance funding plan that will save about $72,000 a year onpremium costs. That amount will be spread among the city’s threebudget areas: general fund, water and sewer, and solid waste.

Also, the board voted to add $2,000 per ward for ditch cleaning.Massengill, who suggested the additional funds, said crews can’tget to all ditches but the work is needed.

“Let’s get to the ones we can get to and clean them out,”Massengill said.

Massengill also suggested adding $35,000 per ward for pavingnext year. However, that was rejected after the $210,000 price tagwould require over $900,000 in carryover funds to meet the generalfund budget.

While the city is in good shape with the general fund,Rudman-Smith said aldermen must “bite the bullet” on addressingsolid waste funding. The $1.01 million solid waste budget includesa $33,124 surplus, but that could be wiped out with one majorequipment repair.

Rudman-Smith said the board either needed raise fees to coverexpenses and get new equipment or abandon operations. She expectedcity-run trash collection services could be maintained with afour-mill tax levy allowed by law.

The city clerk said the solid waste situation was a matter ofeconomics.

“It’s a simple economics question. Do you want it or not?”Rudman-Smith said.

Aldermen are expected to hear from solid waste consultant ButchLambert soon regarding privatization efforts.