The Homer City Council adopted the 2019 budget Monday. The city is due to spend $21 million in the new year.
The city’s operational costs will jump roughly 3 percent from last year. That increase is due in part to employee health care and electricity costs.
However, the city projects increases in both property and sales tax revenue will help cover the hike in operational costs.
The spending plan approves nearly $600,000 worth of capital projects, such as upgrading the city’s wireless network and purchasing new vehicles for the police department.
City employees will also see a .5-percent cost-of-living adjustment. Employees saw an equivalent pay bump last year. Mayor Ken Castner said during the council meeting Monday that he would like the council to craft a policy for pay increases related to cost of living for future budgeting cycles.