City Council is on its way to finalizing the 2008-2009 budget, approving the first reading and determining added utility costs to customers.

The overall general fund budget of $8.2 million is folded into an overall city budget of $32,715,743, which also covers utilities and special funding.

The $32.7 million total reflects an increase of $25,872 from last fiscal year's adjusted budget total-a less than 1 percent increase.

Within the utility side of the budget, the city is set to pay more for the power is sells to city residents. That increase is expected to come in at approximately $800,000 more for wholesale power that the city plans to purchase for next year.

The council has begun work on a utility rate increase for customers which should cover the 4.17 percent hike from the city's source, Piedmont Municipal Power.

For a customer using an average 996 kilowatts per hour, this means their monthly $91.85 bill will increase $3.34 a month. Their new bill after July 1, for example, will be $95.18.

July 1 is when the new fiscal year, and budget, begins.

Another utility bill increase for customers will be for the rehabilitation and expansion of the city's wastewater treatment plant slated to begin between the summer and fall of next year.

After July 1, an average monthly customer bill for use of 776 cubit feet of water per month will increase $1.93. This money will be reserved for project funding for the plant.

City Manager Eric Budds projects the expansion and renovation of the wasterwater treatment plant will cost around $17 million.

The city is hoping for additional funding for the plant's rehabilitation and expansion from federal and loan sources.

In the general fund budget category, a property tax increase and a solid waste collection fee is slated to heighten revenue.

The property tax increase will add $70,000 to the city's coffers, and is figured through a state-authorized formula based on the heightened cost of consumer goods and services and population growth.

Currently, the city has taxation authority to increase the property tax by 3.6 mills, or 3.6 units that represent citizens' shared cost to fund needed budget money.

The 3.6 mill increase means homeowners of a home assessed at $75,000 will pay $11 extra a year.

The fee for garbage collection will rise from the current $6 a month fee to $7 a month, collected from all households equally. The fee increase will boost revenue by $47,000.

Together, the tax and fee increase will cost homeowners of a $75,000 home, for example, $23 extra this fiscal year.

The city will have a special meeting for the budget's second reading and final adoption tomorrow at City Hall at 7 p.m.