Decisions on spending plans await Brookhaven aldermen followinga Tuesday public hearing on a new year budget that could haveexpenses surpassing revenue by over $600,000.

A public hearing on the city’s fiscal year 2004 budget isscheduled for Tuesday at 5 p.m. Aldermen are expected to discussthe budget in more detail during a special board meeting followingthe hearing.

City Clerk Iris Rudman Smith said the proposed budgetanticipates revenue of $6.8 million next year. Included in that isproperty tax revenue based on the tax levy staying constant at23.08 mills for city operations.

“We do not intend to go up on the millage,” Smith said.

How much expenditures exceed revenue will depend on decisionsmade by the board.

Budget writers have calculated 3 and 5 percent pay raises forcity employees, including the mayor, aldermen and other electedofficials. Giving 3 percent raises would put next year’sexpenditures at $7.50 million while 5 percent raises would make thebudget $7.58 million.

The proposed budget now includes no money for paving, additionalindustrial park land purchase or equipment purchases. Smith saidall equipment or capital outlay budget areas had been left blankand would be added by the board during the meeting or taken on acase-by-case basis during the year.

“If they know of a capital outlay that needs to be done, theywill add it to the budget,” Smith said.

Smith said she was awaiting information from City Engineer CarlRay Furr regarding the multi-modal transportation facility, whichis receiving federal funding assistance, and other city projects.She said revenue and corresponding expenditures would be added asfunds become available and the board approves them.

The proposed budget includes a 24.7 percent increase in healthinsurance premiums for city employees. The board voted a specialmeeting on Aug. 7 to renew the policy in its current form.

The new premiums are $532 a month for city employees and $1,154a month for employees and dependents. As a benefit of cityemployment, the city covers all of the employee’s premium and allbut $55 of the costs for the employee and dependent.

Smith said the good benefits package helps to offset the lowersalaries that many city employees make. She said the city has hadits current insurance plan since the late 1980s, and the samepackage is no longer available if it is dropped.

“Once we lose this, we can’t get it again,” Smith said.

Regarding balancing the general fund budget, Smith said moneycarried over from the current year could be used.

However, Smith expressed concerns about depleting cash reservesif carryover funds continue to be used. She said she tried tomaintain a cash reserve of around $800,000 for emergencies ifneeded.

In other spending areas, the water and sewer budget anticipatesrevenue of $2.02 million and expenditures of $2.20 million or $2.21million, depending on the pay raise decision. The budget includesno money for equipment or vehicle purchases.

Smith indicated the possibility of some cuts in that budget dueto its being an enterprise fund. Enterprise fund budgets must usemoney for user fees to pay for expenditures.

“On that kind of fund, you’ve got to pay for yourself,” saidSmith, adding that carryover funds could cover the projecteddeficit but no more.

The solid waste fund budget forecasts revenue of $1.01 millionand expenses of $974,135 or $982,910, again depending on the payraise decision.

That budget also includes no money for any major equipmentpurchases or repairs or vehicle purchases. Smith said one majorequipment failure could wipe out an surplus in the solid wastefund.

Aldermen last year laid off employees and took other steps tocurb spending in the city’s solid waste operations. Aldermen areconsidering a move to privatization of services, but have yet tomake a final decision.

The city’s new fiscal year starts Oct. 1.