DAPHNE — The City Council at a work session Thursday began reviewing the budget for the 2008 fiscal year.

The operational budget for 2008 is about $13.3 million, of which 57 percent is earmarked for payroll and related items, according to finance director Kim Briley.

This includes all existing job slots, even if they are currently vacant, Briley said. It excludes positions that may be created.

The estimated sales tax for the 2008 fiscal year is about $12 million, according to Briley.

The estimated amount from building licenses is $1.45 million, according to Briley.

Council members discussed the possibility of looking into having an engineer on the staff.

Under general funds, the city budgets about $18,500 for the services of an engineer, which does not include special projects, according to Briley.

Budgets for special projects already include the engineering fees, Briley said.

Having an engineer on staff could be useful and cost-efficient, Councilwoman Cathy Barnette said.

Council President Greg Burnam and Barnette said that another area to look at to reduce costs is the amount spent on training employees.

While some training is necessary to keep certifications, other training aspects seem to be unnecessary, Barnette said.

If the operating budget is adopted by City Council, the capital budget will be about $757,000, according to Briley.

“There’s going to have to be some cutting somewhere,” Burnam said of trying to increase the capital budget.

City leaders will look at contributions the city makes to various organizations, in determining next year’s allocations.

The capital budget covers expenditures and requests from the different departments.

Requests, such as new vehicles and equipment, total $4.7 million, Councilman August Palumbo said.

The first read for the operating budget will be at Monday’s City Council meeting and then it could be adopted at the first City Council meeting in October.