The Jamestown Finance and Legal Committee recommended passage of a 2022 city budget Tuesday.
The budget balances revenues and expenditures at a level about $500,000 above general fund revenue and expenditures last year.
"It is never an easy process," said Jamestown Mayor Dwaine Heinrichs. "The bright spot right now is we have been able to get the city general fund reserves back to where they need to be at about $3 million."
The preliminary budget includes a projected ending balance for 2022 of $3.4 million.
The budget includes two new city employees with an additional staff member added to the city assessor's office and a new staff position created to manage the city's geographic information system which will map and document all of the city's water, sewer and street infrastructure.
The expenditure budget includes a 2.5% step raise and a 3% cost-of-living raise for most employees.
"It sounds high," Heinrich said. "We need to keep in mind we gave a $1,000 raise last year. We've had quite a few years with no step raises."
The budget also includes $435,000 in repairs to city-owned buildings including $250,000 for roof work on the Jamestown Civic Center and $65,000 in repairs and upgrades to Jamestown City Hall.
On the revenue side of the budget, the plan includes a 5% increase to the water and utility rates paid by city residents next year.
The property tax portion of the revenue budget is about $30,000 less than the 2021 budget. Calculations for projected mill rates have not been developed yet.
The property tax budget for 2022 is $4.3 million of the city's $8.8 million revenue budget. The remainder of the funds comes from state and federal distributions, license fees and charges for city services.
"Other sources of revenue seem to be steady this year compared to last year," Heinrich said. "We are hopeful for another good year."
The Jamestown City Council will consider the preliminary budget at its Aug. 2 meeting. The final budget must be approved by Oct. 10.
In other business, the Jamestown Finance and Legal Committee directed the city attorney to address possible changes to a policy designed to streamline the city's purchase of materials.
The current policy requires a formal bid process for all purchases over $40,000. The proposed change to the policy would allow purchases of up to $100,000 to be made based on written proposals from three vendors.