The city of Hanceville has approved a budget for 2024-2025 that includes a 5 percent pay raise for both full and part-time city employees.

At its regular meeting this week, the Hanceville City Council adopted the city’s new budget for the coming 2025 fiscal year, which begins on Oct. 1 and ends on Sept. 30 of next year. Employees will receive a 2.5 percent cost-of-living pay raise along with an additional 2.5 percent step raise.

The city anticipates a revenue shortfall of approximately $300,000 beneath its current-year revenues. Overall, the 2024-2025 budget reflects a total $5,730,366 in projected expenditures and $5,863,731 in projected revenues — figures well short of the $6.68 million in expenses and $6.7 million in revenues the council budgeted a year ago for 2023-2024.

In addition to the estimated $300,000 drop in sales tax-related revenues for the coming year, the new budget also omits $650,000 in Alabama Transportation Rehabilitation and Improvement Program funding that was included in this year’s budget. That omission comes in the wake of delays that likely won’t see construction begin on the city’s upcoming turn lane expansion project at the intersection of Alabama Highway 91 and U.S. Highway 31 until December of 2026 — a date that falls within next year’s 2025-2026 fiscal-year budget.

The city’s public works department will work with less in the 12 months ahead, spending a projected $1.1 million compared with its current-year budget of $1.96 million. Spending also falls for the Hanceville Police Department, which operated this year with a budget of $1.73 million compared with a projected 2025 budget of $1.47 million.

The Hanceville Fire Department is allotted $986,163 in anticipated spending for the upcoming budget year, an increase over the current year’s budgeted expenditures of $893,732.

In other business at its Sept. 26 regular meeting, the council:

— Approved street closure and vendor fee waivers for the 2024 Mud Creek Arts & Crafts Festival, scheduled for Saturday, Oct. 19 from 9 a.m. until 5 p.m.

— Approved the minutes of the council’s Sept.12 regular meeting.

The next regular meeting of the Hanceville City Council will be held Thursday, Oct. 10 at 5:30 p.m. in the council meeting room at Hanceville City Hall. A public 5 p.m. work session will precede the meeting at the same location.