DAPHNE, Ala.—The Daphne City Council will hold a finance-based work session tonight at 6:30 p.m. in City Hall.

The purpose of the work session will be to prepare for the upcoming fiscal year’s budget, and at the Nov. 8 work session, council members asked the mayor to shave off around $500,000 from the proposed general fund budget.

The general fund pays for bid awards and city projects, and it was set at just more than $19.8 million last year, City Finance Director Kim Briley said.

The council appropriated an additional $800,000 throughout the year on various projects, so the total amount of expenses from the general fund was at approximately $20.6 million.

The estimated revenue for 2011 is $20.2 million, according to Briley; it falls around $400,000 short of last year’s expenses. The council is required by ordinance to take $500,000 from general revenue incurred throughout the year and place it into a reserve fund for capitol road projects.

While the council did ask the mayor to cut back, there is hope in the city that Daphne will see a spike in sales tax revenue in 2011.

“I think what we’re seeing nationally is a slight increase in our sales tax revenue,” Councilman John Lake said. “We’ve got Publix coming and other shopping stores being revived. We will see an increase in our revenue stream this year, so I hope the council will recognize this.”

The city incurred an extra $7.5 million in revenue from 2004-2009, but with a struggling economy, the city wants the mayor to cut back to make the line of expenses and income even for the next fiscal year.

Small said at the Nov. 8 meeting that the budget couldn’t be trimmed in many places, but the council stood firm on its stance and asked the mayor to see what he could do and report back for tonight’s work session.

The city currently has $11 million in reserve funds, Briley said.