The decision was made in May, but was not effective until aldermen adopted the 2009-2010 budget last week. Water users will pay a $1 increase for the first 1,000 gallons used and 25 cents extra for each additional 1,000 gallons used. During the 2008-09 budget year that ended June 30, customers paid $5.51 for the first 1,000 gallons and $2.89 for each additional 1,000 gallons used. The city is expecting to receive an additional $540 from the increase - or about a 7-cent per day jump for each customer. The decision was made to offset extra costs related to installing a chlorination system last year. Sewer rates are not affected. The general and water fund balances out at $1.4 million budgeted for revenues and expenditures. The budget includes $1.2 million set aside in the general fund and $307,732.55 in the water and sewer fund. The city also anticipates using funds from five separate accounts - street/motor fuel tax, capital improvement, debt service, officers training and South Street well and tower - to help cover additional expenses. City Clerk Mary Lou Rainwater said the city estimates to spend $148,616.83 from those five accounts and have a closing balance of $54,889.26 June 30, 2010. Rainwater said working on this year's budget had its difficult moments. She noted the city is anticipating receiving grant money, but also wanted to allocate enough money to fund some projects should the extra funding fall through. "The budget was more time-consuming and took more input," she said. Like many surrounding cities, the decline in sales tax revenue is affecting Truesdale. For example, sales tax revenue is estimated at $100,000 in the general fund for the 2009-2010 year. Last year, the city anticipated $126,500 in revenue, but only received $108,289.46. "That is money we don't have available for other projects," Rainwater said. While aldermen held off on giving employee raises this year, board members will see their pay increase from a decision made in January 2008. Aldermen voted last January to increase the mayor's monthly pay to $400 from $150, while aldermen will now receive $200 per month, a bump from $75. Mayor Murray Bruer emphasized the decision to keep payroll the same was due to the current economic downturn. Only two of the four aldermen remain from when the pay increase was approved last year. Bruer was an alderman at that time. "They (current aldermen) based it on the economic problems right now," he said about not increasing payroll. The two biggest projects the city plans on tackling during the 2009-2010 year are modifications to Well No. 1 and street improvements. Improvements to Well No. 1 are related to the city's chlorination system and include increasing the amount of water pumped. The estimated cost is $100,549.95, according to Rainwater. The city will use $60,591.53 from the South Street Well and Tower account to fund more than half of the project. Rainwater said the remaining amount will be taken from the water department fund. City officials have estimated street improvements will cost $157,340 this year, though a grant could pay for the majority of the work. A three-project package - consisting of widening West and South streets, paving Smith Street with concrete and fixing drainage problems at the intersection of Laura Street and Conrad Circle - is anticipated to cost $255,000 overall. The entire project, excluding a $50,000 contribution from the city, could be paid for if a grant application submitted by the city is approved. The city also has budgeted $250,000 for a city hall expansion project, though discussions remain in the early stages.