By Tim SchmidtRecord Managing EditorWarrenton city officials are projecting sales tax revenue to continue an upward climb in the new fiscal year.The city expects the sales tax to generate $2,569,605, a 7 percent increase based on collections from the previous fiscal year that ended last month. A year ago, officials had expected sales tax to remain flat and budgeted $2,401,500.Now it appears the local economy is recovering.“It is rebounding,” said Terri Thorn, director of operations/finance officer. “I would expect to see single digit increase continuing.”The new 2015-16 budget also includes a 5 percent hike in water and sewer rates and over $10 million allocated for capital expenditures, plans that include a dog park and possibly a new pool to be built on city-owned property on Pinckney Street.The new spending plan went into effect July 1 and ends June 30, 2016.Total projected revenue for all funds is $8,968,950, which is $272,240 higher than last year’s budget estimate.Total operating expenses for all funds is estimated to be $6,228,454, with capital expenditures and debt service projected to be $10,025,240 and $1,367,309, respectively.Real estate and personal property tax revenues are estimated at $440,000, a 1 percent increase based on estimated receipts. Of the budgeted amount, $277,000 is allocated to the general fund and $163,000 to the park fund.The total revenue also includes funds from grants ($658,960) and tourism tax ($142,000). Also, a reserve balance of $1.3 million in the water and sewer fund and $1.1 million in the general fund is being maintained by the city.This is the second year in a row water and sewer rates are going up by 5 percent. The average monthly water and sewer bill for residential customers will increase by $2.12 under the rate hike, while bills for commercial customers will go up $6.69.Residential and commercial customers outside the city limits will see their bills increase $3.96 and $31.67, respectively.Prior to the rate hike, the average monthly bills were $42.37 (city residential), $133.73 (city commercial/industrial), $79.12 (outside residential) and $633.43 (outside commercial/industrial).For expenses, the payroll budget will increase 3 percent. Officials have included both performance-based and merit increases as part of that total.The city is adding a position in the special events department and changing a position in the grounds and maintenance department from seasonal to full time. The changes will cost an additional $40,144.Thorn said the special events job will not be added until determining if a need does exist.“We want it to be there in the event we get into the year and we need someone to assist with special events,” Thorn added. “One thing we’re seeing, the tourism committee is wanting to get involved and have more events for the city.”The city also is switching to a new retirement plan known as the Missouri Local Government Employees Retirement System (LAGERS). The city’s retirement contribution will increase by $35,105, which includes expenses to cover 100 percent of an employee’s service prior to participating in the program.The move is designed to help retain and recruit employees, who must work at least 1,500 hours annually and are required to pay 4 percent of their gross salary and wages as their retirement contributions.In addition, the city is facing a 9.5 percent increase in health insurance premiums, 5 percent jump in both worker’s compensation and liability and property insurance, and 12 percent bump in utility expenses.Of the city’s debt service, $584,680 is included for the ongoing wastewater system improvement project and $480,836 for previous water and sewer system improvements.Capital expendituresThis year’s budget includes $2.9 million in capital projects that were funded but not completed in the past year.Projects the city is proceeding with again are reconstructing Hickory Lick Road ($1.1 million), water line replacements that require boring under Interstate 70 ($628,000) and the painting of two water towers ($273,000).Grant reimbursements totaling $625,036 for the Hickory Lick Road project are anticipated to help offset the cost.The city has allocated $5.3 million for construction and engineering related to the first phase of the wastewater system improvement project, which is being financed from revenue bond proceeds.New projects that the city has allocated funding for in the new fiscal year include a number of repairs and improvements to streets and sidewalks. Of the $667,800 set aside for the work, $350,400 has been allocated to build sidewalks and install lighting on the east side of Highway 47 between Veterans Memorial Parkway and the railroad bridge.In the capital sales tax fund, $130,000 is estimated to be spent for additional amenities and maintenance projects at several parks, along with $30,000 for improvements to the pool.The city also has projects to spend $125,000 on property it owns on Pinckney Street across from Rebecca Boone Elementary. Of that amount, $75,000 is appropriated for a walking trail and dog park and $50,000 will be spent on engineering and testing to see if the property could be developed as a new site for a new pool.Additionally, the city plans to purchase vehicles for the police department, building and sewer/treatment plant departments. A total of $117,600 has been allocated for the vehicles.City of Warrenton