MAGNOLIA SPRINGS, Ala. - The Magnolia Springs Town Council discussed the proposed 2011-2012 fiscal year budget at Tuesday's work session.

The projected town income is $343,680, and the proposed expenses match the number.

"This is a balanced budget and would maintain our reserve funds of $154,782," Mayor Charles Houser said.

The fiscal year will begin Oct. 2011 and end Sept. 2012. This is the first time the council has talked about the 2011-2012 budget, and Houser said the expense amount is "within a couple thousand dollars" of the 2010-2011 budget, which was originally set at around $345,000.

"The item that is probably the biggest issue is the Ad Valorem tax, which went down," Houser said.

The projected income for the town on the tax is $55,000.

The proposed expenses for each area are as follows:

• $133,780 for the general government department fund.

• $18,000 for debt services, which includes principal payments and interest expense.

• $85,000 for the Public Works Department.

• $60,100 for Public Safety, which includes police protection, legal counsel and miscellaneous expenses.

• $16,800 for the Parks and Recreation Department, which includes supplies, Riviera expenses and contract labor.

• $18,000 for Environmental Protection.

• $12,000 for the Historic Preservation Commission.

The proposed amount for Public Works was not broken down into specifics.

"By the next workshop, we ought to have that all broken down," Councilman Brett Gaar said.

The Magnolia Springs council meets on the second Tuesday of each month for a work session and on the fourth Tuesday of each month for a council vote meeting. Both meetings begin at 5 p.m.