The Ball Ground City Council on Thursday heard the first reading of its proposed budget for fiscal year 2010-11, which goes into effect on July 1.
The proposed budget is $1.6 million, a slight increase from the current budget of $1.5 million.
"It is conservative, but not quite as conservative as last year," Mayor Rick Roberts said, adding that being tighter with this year's budget helped the city plan for the proposed budget.
The current millage rate is 5.194 mills. The rate for the proposed budget has not yet been set. The rate will be set when the tax digest comes out in the fall.
The proposed general operating fund budget is $562,757, an increase from the current budget of $537,361. City Manager Eric Wilmarth said the majority of that increase is from prior year property tax collections.
"We are hoping to collect $22,000 of what is outstanding," he said, adding the city feels confident it can collect those funds.
The fund also anticipates the issuance of more building permits and inspections.
"It accounts for a little more growth," Roberts said about the budget.
The water and sewer fund is budgeted at $681,350 in revenues and $704,586 in expenditures. Wilmarth said that because of depreciation, the fund will still have a positive cash flow.
The Special Purpose Local Option Sales Tax fund has been set at $318,050, up from $300,500 in the current budget. The fund includes payments for the City Hall and Valley Street extension projects.
Wilmarth said the projection is based on what the city has been receiving over the past few months.
"Retail sales are back on the increase," he said.
The sanitation fund is budgeted at $83,000 in revenues, up from $73,400 in the current budget. The fund is expected to have only $69,514 in expenditures.
Wilmarth said the city has approximately $581,000 in reserves.