Union City council members Aug. 15 will hold a public hearing and likely approve the city’s $12.8 million general fund budget. Representing a 17 percent increase over the current fiscal year, the major differences on the revenue side reside in transfers from various enterprise funds and other sources. The city is considering a two mill property tax increase.

A breakdown of the $2.2 million increase in revenues includes $1,524,237 in transfers from the fund balance from the 2005-2006 general fund along with transfers from the water and sewer, solid waste, corrections and hotel/motel funds. Other revenue increases included $390,566 in new taxes, $159,736 in licenses and permits, $48,750 in intergovernmental revenues, $80,000 in investment income, $25,400 in contributions and donations, said Finance Director Angela Hudson.

On the expenditure side, the proposed 2006-2007 budget includes a $598,029 increase in personnel services and employee benefits. A portion of that increase comes from adding six administrative positions, four new police officers beyond the eight officers added in 2006 and nine firefighters. Public services is proposed for a decrease of four staff.

Capital outlays for projects such as road improvements account for $875,669 in expenditure increases, purchases and contracted services will add $370,127 while supplies will increase by $199,255. Hudson said current plans include keeping $529,000 in the contingency fund.

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