The City of Hamlet will reevaluate its budget midway through the upcoming fiscal year to determine if any money is available to move on capital projects that it can’t afford right now.

Hamlet City Council gave its unanimous approval Tuesday night to a budget including no tax or service fee increases for the 2010-11 fiscal year.

A public hearing preceded the council’s vote, but no members of the public were on-hand to offer comments.

While presenting the budget, City Manager Marchelle Adams David told the council it balances at more than $7.5 million, and the city showed restraint in funding non-essential programs and initiatives.

“Because economic conditions have reached the lowest levels since the recession of 1980-82, it is difficult to be overly optimistic about an upward spiral in the national economy in the upcoming year,” David read from a message prepared for council members. “Accordingly, all indicators suggest that municipal revenues will not experience growth in 2010-11. As the unemployment rate continues to increase, we will witness stagnant home and retail sales, which directly drive our sales and property tax revenues.”

She continued to say the City of Hamlet has budgeted itself into a position “to maintain the current level of municipal services without fee increases to our residents.”

She set out several goals. The proposed budget aims to maintain the property tax rate at 66 cents per $100 valuation, preserve reserve funds, set “realistic” revenue estimates, retain more than a third of city assets in fund balance, preserve quality of life expenditures and plan for future capital projects.

Per David’s recommendation, the budget won unanimous approval.

Mayor Jeff Smart said the city wasn’t able to do several things it wants to do, which is why the council will take a second look at its financial standing midway through the year.

“The city owns several buildings that are currently vacant that we would like to do something with for our citizens to enjoy,” Smart explained in an interview after making his comments.

In other business:

The council granted an extension to property owners of a home on Pine Street, after a member of the family that owns it contacted the city and said work would begin June 9 to bring it back up to code.

Smart said the city will monitor the work to be sure it is being performed.

Board members encouraged citizens to show up for July 4th festivities in downtown Hamlet during their reports.

Various activities will be held on Main Street, and a fireworks display will be held on the evening of July 4th, which falls on a Sunday this year.

Staff Writer Philip D. Brown can be reached at (910) 997-3111 ext. 32, or by e-mail at pbrown@yourdailyjournal.com.