A $29.3 million budget cleared the Mandan City Commission for fiscal year 2009 on Tuesday, but it was met with a few challenges.

Spending includes a 4.0 percent cost- of-living pay increase for city workers.

The city's base water rate will increase $3 per month and the sewer utility base rate will climb $3.42 per month. Mayor Tim Helbling said that amounts to a utility bill increase for the average residential customer of $7.42 per month or $89 per year. This figure is based on the customer's use of 7,500 gallons of water.

Susan Beehler asked why there was a decrease in money received from traffic fines. It was explained that a North Dakota Supreme Court decision required the fines be reduced.

Helbling added there are fewer officers on the streets due to a worker shortage. Beehler asked why Mandan's water rates were comparible to Bismarck's when it was so much smaller. She said fortifying the police department should be a bigger priority than raising water rates.

Helbling said a number of people are being interviewed to fill the law enforcment positions and a significant wage increase was approved last year.

It also was explained that the city is using utility rate increases to pay for the $8.6 million south side water reservoir project in Mandan, and that project's water transmission line and sewer improvements. Another $4.5 million is being dedicated to upgrade the water treatment plant.

Capital outlay expenditures include $65,000 for a pothole patcher, $29,500 for fire equipment at the new southeast side fire station near Kist Livestock, $40,700 for new computer equipment, $54,000 for two new police vehicles, $50,000 for new water meters, $12,000 for three grass site containers, $13,000 for a municipal contractror box and $27,000 for a vehicle in the engineering department.

Commissioners said there were a series of water and utility rates increases linked to needed improvements for the city.

The Budget Committee consisted of Helbling, City Administrator Jim Neubauer and Finance Director Greg Welch.

Helbling said each department head had to justify its budget if the department exceeded a 3 percent increase. He said many could not meet that 3 percent window due to increases in fuel and utility costs.

Under the budget, the city approved spending:

n $7.03 million in its general fund.

n $747,500 in highway distribution funds.

n $92,950 for the city's share of the special assessment fund.

n $133,250 for the city cemetery fund.

n $43,000 in the city's promotion fund.

n $2,000 in the alarm equipment reserve fund.

n $1.41 million in the city sales tax fund.

n $131,500 in the public transportation fund.

n $58,000 for the fire equipment reserve fund.

n $150,650 for the Job Development Authority.

n $15,750 for the Narcotics Task Force grant.

n $31,250 in the Metropolitan Organization grant fund.

n $12,050 in Traffic Safety Grant Funds.

n $1,500 for UnderAge Drinking Enforcement grant.

n $49,750 in School Programs Worker Grant Force Program.

n $45,100 in the Narcotics Task Force grant fund -HIDTA.

n$146,700 in the Safer Grant Fund.

n $60,000 for the Mandan Community Center Maintenance Fund.

n $2,250 in the BNSF settlement fund.

n $11,150 for the Mandan Supplemental Environmental Projects Trust Fund.

n $3,000 for the HPC Building Fund.

n $65,800 for the Downtown Redevelopment Fund.

n $26,250 in the Health and Safety Fund.

n $142,200 for the Mandan Community Center Revenue Funds of the 2005 fund.

n $46,400 for the CVP Capital Construction Revenue Bonds of 1994 fund.

n $64,600 for the Liberty Memorial Bridge General Obligations Bond Fund.

n $6.12 million in the Refunding Improvement Bonds Fund.

n $175,100 for City Visitors Promotion Capital Construction Fund.

n $574,400 in the Mandan Growth Fund.

n $10.2 million for the Water, Sewer and Utility Fund.

n $1.16 million for the Solid Waste Utility Fund.

n $290,550 for the Street Utility Fund.

n $10,500 for the Mandan Parking Authority Fund.

n $240,000 for the City Shop Fund.

(Reach reporter LeAnn Eckroth at 250-8264 or leann.eckroth@bismarcktribune.com)