The City of Tifton passed a $42.6 million 2009-2010 budget in a special called meeting Monday afternoon. Meeting that budget won’t require an increase in taxes as the city’s millage rate will hold at 6.759.

“With other cities raising taxes, laying people off and furloughing, we are here to report that the City of Tifton is in excellent financial health,” said City Manager Mike Vollmer.

Vollmer said reforming the retirement system for city employees saved $200,000. For employees who were hired July 1, 2008 or after, the city will fund one percent of their retirement compared with 27 percent for those hired before that date. The city doesn’t plan to fill the current 27 vacancies in the city staff.

The city budgeted $11.9 million for the general fund; $708,712 for the tourism and economic development fund; $7.5 million for Special Purpose Local Option Sales Tax (SPLOST) revenue; $487,000 for the Community Development Block Grant Revolving Fund; $5.2 million for the gas fund; $3.6 million for the water fund; $3.5 million for the sewer fund; $5.7 million for the solid waste collection and disposal fund; and $3.9 million for the telecommunications (CityNet) fund.

The approved budget represents a 9.84 percent reduction in funding for the general fund; an 8.13 percent reduction in the hotel-motel fund; a 3.03 percent reduction in the water fund; a 7.01 percent reduction in the sewer fund; a 16.94 percent reduction in the gas fund; and a 2.33 percent reduction in the telecommunications fund.

Vollmer said the city also plans to cease borrowing from the gas fund for shortfalls, which he said should allow the department to build $150,000 in reserves each year for four years.

The city plans to provide its employees with a three percent merit increase in January and create a health care clinic for employees. Funding is also in the 2009-1020 budget to:

• Build a new fire station in Chula and one on Carpenter Road.

• Purchase equipment and communication devices for the fire department.

• Update technology in patrol cars used by officers at the Tifton Police Dept.

• Resurface multiple streets and roads in the city.

• Expand and upgrade sewer systems, upgrade water lines and replace outdated water meters.

Mayor Jamie Cater said the city “wouldn’t be at this level in these tragic times if it wasn’t for you guys” as he spoke about the city’s department heads and other employees.

To contact senior reporter Angie Thompson, call 382-4321.