In a special council meeting last week, the Foley City Council decided to continue operating under the budget that is already in place, which will give the council more time to work out a budget for the next fiscal year, which began on Oct. 1.

The council passed a continuing resolution, which allows 60 additional days to review the new budget. The City of Foley is beginning the 2010-2011 fiscal year under the budget from the 2009-2010 fiscal year.

A financial plan for the upcoming fiscal year was presented to the city council, but no decision was made. The city council is expected to adopt a new budget by the end of November.

According to the budget presented last week, the City of Foley is expecting less revenue in the 2011 fiscal year than was collected in the 2010 fiscal year. The city is projecting $24.05 million in revenue in the 2011 fiscal year, which is over $700,000 less than revenue collected during the 2010 fiscal year.

The loss in revenue, according to the financial report, is due to anticipated drops in property tax revenue because property values have declined, a drop in revenue from licenses and permits and less grant money anticipated in the upcoming year. The projected revenue includes a 1.5 percent sales tax increase which will account for $150,000 worth of revenue, an increase in utility tax equivalents which will account for $393,570 worth of revenue, increased fees for housing Elberta and Summerdale prisoners and $150,000 in lost revenue that the city expects to receive from BP.

Foley closed out the previous fiscal year with almost $2 million left after budgeted spending. The projected cash balance for the end of the upcoming fiscal year is a mere $7,832.

While the projected cash balance for the upcoming year is smaller than the previous year, the city feels that it is important to keep closely monitoring all expenditures because of the current economic uncertainty. The city is also hoping that revenue in the upcoming year exceeds projections.