By Tim SchmidtRecord Managing EditorSales tax revenue is expected to remain flat during the new fiscal year according to budget projections approved by Warrenton officials.The budget also includes a 5 percent hike in water and sewer rates and a 3 percent pay raise for employees.The spending plan also reflects cuts in the city’s recreation department which has been eliminated. The city plans to outsource much of the department’s functions to a St. Charles County-based company which will manage and oversee city-sponsored athletic programs.Warrenton aldermen adopted the 2014-2015 budget during their June 17 meeting. The new spending plan went into effect July 1.The total projected revenue from all funds is $8,696,710, which is $279,093 higher than last year’s budget estimate. Total operating expenses for all funds is estimated to be $5,852,535, with capital expenditures and debt service projected to be $4,819,500 and $985,615, respectively.City officials are anticipating sales tax to generate $2,401,500 in revenue next year, the same amount budgeted a year ago. That is due to the hope new businesses will partially offset decreased revenues from stores that have left the Warrenton Outlet Center.Real estate and personal property tax revenues are projected at $436,000, a 4.6 percent increase based on estimated receipts. Of the budgeted amount, $274,000 is allocated to the general fund and $162,000 to the park fund.The total revenue also includes funds from grants ($815,000) and tourism tax ($138,000). Also, the city continues to maintain a reserve balance of $1.3 million in the water and sewer fund and $1.1 million in the general fund.The new water and sewer rates will be reflected in the August bill. The average monthly water and sewer bill for residential customers inside the city will increase $1.91, according to city officials. Commercial customers will see their payments go up $6.36.Residential and commercial customers outside the city limits will see their bills increase $3.71 and $23.32, respectively.The current average monthly bills are $38.15 (city residential), $127.14 (city commercial), $74.16 (outside residential) and $466.35 (outside commerical).The 5 percent hike was needed to cover operating costs as well as debt service related to the expansion and upgrades to the wastewater treatment plant.For expenses, all permanent and full- and part-time employees will receive a 3 percent pay raise. The city also has budgeted $10,227 for merit raises.The city also is adding a part-time court clerk position and will hire two new full-time police officers, positions that were eliminated last year. A full-time maintenance position has been eliminated and will be replaced by a seasonal position. This year, the city also has eliminated the entire recreation staff with the exception of a full-time special events staff member. All revenue and expenses for the recreation department have been eliminated from this year’s budget.The city is also facing a 5-percent jump in both health insurance premiums and liability and property insurance, 3 percent increase in utility expenses and a 8 percent bump in workers’ compensation insurance.The spending plan also calls for payments to reduce the city’s debt service including a payment of $124,970 for the city hall expansion project, along with $494,032 in expenses related to previous water and sewer system improvements. New debt service totaling $180,000 is planned for the fiscal year for Phase 1 for the expansion and upgrades to the wastewater treatment facility.Capital ExpendituresOf the $4.8 million allocated for capital projects in this year’s budget, $3.1 million will be spent on several extensive projects that were not completed in the past year.That includes $1.1 million to reconstruct Hickory Lick Road, $640,000 for water line replacements that require boring under Interstate 70, $408,400 for painting of two water towers, and $223,600 for new sidewalks along Highway 47.Officials anticipate grant reimbursements totaling $585,100 to cover half of the Hickory Lick project and $223,600 to offset all of the sidewalk project.New projects that are planned in the new fiscal year include spending $453,000 for repairs for multiple streets and sidewalks, $479,000 for construction engineering related to the expansion and upgrades for the wastewater treatment plant, $25,000 in preliminary engineering to identify if there is enough room for sidewalks and lighting along the east side of Highway 47, $6,300 to allow online payment options for utility billing and $25,000 for website improvements.In addition, the city has allocated $99,000 for improvements at the athletic complex and $30,000 for pool improvements. The city also plans to purchase vehicles for the police department, animal control and sewer departments totaling $127,800.Warrenton Sales Tax