Decatur City Commissioners at the commission’s June 16 meeting. Photo by Dan Whisenhunt

Decatur City Commissioners on June 16 unanimously approved the city’s $21.8 million Fiscal Year 2015 budget and annexed 29 Parcels along Derrydown Way.

The new budget is a 5 percent increase compared with Fiscal 2014, which ends on June 30. The budget includes a transfer of $769,930 to the city’s reserves, called a fund balance.

That would give the city a fund balance of 27 percent of its operating costs. Mayor Jim Baskett had floated the idea reducing that amount to 25 percent, but during Monday’s meeting he said he’d decided against pursuing it. The city anticipated an increase of more than 12 percent in its tax digest, but some Decatur residents are planning to appeal their tax assessments.

The city’s millage rate – 13 mills – will stay the same, but the city expects more tax revenue as a result of the new assessments. It’s just a question of how much. The mayor thinks the appeals process could take a bite out of the city’s expected tax collections.

“With the reappraisals, there are going to be an awful lot of appeals,” Baskett said. “With all of those appeals, there’s a chance of considerably less in the digest than we’re looking at now.”

The new budget includes a 3 percent cost of living raise for employees, and creates five new positions funded by new sources of income, like parking fees.

Commissioners also voted unanimously to annex properties at 821-840 Derrydown Way, 894-927 Derrydown Way and 302-346 South Columbia Drive. The annexation will add two students to the city school system in year one, and an estimated six students by year five. According to a service delivery report city won’t need to hire any additional staff to provide police and fire protection to its new residents.

The annexation becomes official on Aug. 1.