The Athens City Council on Monday unanimously approved operating budgets for the 2017-2018 fiscal year.

Specifically, those included the general fund, special revenue, landfill, special school fund, contingency fund, and the sewer, gas and water departments.

The general fund shows a little more than $29 million in revenues as compared with $28.5 million in expenditures. That leaves a surplus of about $504,352 before discretionary appropriations. About $494,000 in appropriations will be awarded to nonprofits and local groups at a later date.

District 2 Councilman Harold Wales expressed concern that there would be a general fund surplus of a little more than $10,000 remaining after appropriations are awarded. He added the demand from local agencies rises each year.

“I’m sure you’re concerned,” Athens Mayor Ronnie Marks told Wales. “We screw things down very tight on the front end and we expect to come in under budget (projections). This is a very conservative look.”

Marks explained there are cushions built into the general fund on items like gasoline consumption, for example. If prices stay low, he said, there will be some reserve funds.

Elsewhere, the council passed the special revenue budget, which projects alcohol revenue at $706,500. City Clerk Annette Barnes told the council she considered that to be a conservative amount. She believes the amount could be as much as 15 percent higher, which would put anticipated revenue at more than $800,000.

The council also passed the special school fund operating budget, which provides $870,000 to Athens City Schools for debt service. Those funds are derived from 20 percent of a 1-cent sales tax.

The city uses another 20 percent of the same sales tax ($870,000) as part of its contingency fund operating budget, which was also approved by the council. The city will use $800,000 toward debt service and $66,667 as part of its second payout to the incentives package that lured Polaris to Limestone County.

The council also approved the following budgets:

• Gas department: Anticipated revenues of $14.4 million versus projected expenditures of $13.5 million for a net of $893,838. However, a number of capital projects will bring that net down to about $405,338.

• Sewer department: Anticipated revenues of $6 million versus projected expenditures of $5.5 million for a net of $544,862. After capital expenditures, the net will be $361,362.50.

• Water department: Anticipated revenues of $6.1 million versus projected expenditures of $5.7 million for a net of $392,057. After capital expenditures, the net will be $87,057.91.

Power rate increase

The council also approved a rate increase of 1.5 percent for the Athens Utilities electric department, effective for meters read on or after Oct. 1. That equates to an increase of $1.45 cents per month, per customer, using 1,000 kilowatt-hours per month.

The Tennessee Valley Authority board of directors recently voted to increase wholesale electric rates, which necessitated the need for Athens Utilities to raise its customer rates.

Other business

In other business, the council:

• Accepted certain streets, sidewalks and storm/sanitary sewer mains operated by the Athens Housing Authority. City attorney Shane Black said the city had been under contractual obligation to assume those as public areas since the 1970s, but it had not been done. He said the reason why it came up again is the housing authority is seeking approval from the federal government to improve facilities. Public Works Director James Rich said the streets around the housing developments at Roberts Apartments and Sanderfer Road apartments would need to be repaved within the next five years.

• Amended an ordinance updating the city’s business license code as it pertains to delivery licenses. Black said the amendment was necessary because the state Legislature amended the law last year;

• Appointed Greg Skipworth to the Zoning Board of Adjustments;

• Tabled a resolution declaring a public nuisance on Maxie Allen Street;

• Delayed a vote to accept a proposal from Morell Engineering on geotechnical services for the proposed Athens Recreation Facility; and

• Set a public hearing for Oct. 23 to hear a request from the Athens Board of Education to rezone 5.82 acres located west of Dexter Street.