The New Sharon City Council Wednesday night voted to amend the 2007-2008 budget. The council will hold a public hearing at 7 p.m. Monday for the 2008-2009 budget estimate.

By a 5-0 vote, the council approved increasing the current budget by $90,000. The added expenditures were needed for increased costs for public safety, public works and business-type enterprises.

“The explanation for the increase, it was necessary to do due to the increase in costs associated with snow removal, wages and fuel,” New Sharon Mayor Ed Davis said. “And also due to the renovation of the new police station and the demolition of property on East Cary Street.”

Being the bearer of bad news, Davis informed the council the city’s Community Development Block Grant in the amount of $380,000 was turned down. The city applied for the state grant to help offset the cost of an estimated $760,000 water system improvement project.

The lack of grant money has forced city officials to look at raising water rates. The exact amount is still being worked out.

“Now we’re going to have to raise the water rates. And we’re working up a figure on that,” Davis said.

Davis said the cost of the project wouldn’t be known until bids are received, but he estimated the city might have to borrow up to $350,000 to $500,000 to do the water system improvements.

Through discussions with a Garden and Associates official, several key areas were identified as needing work.

“We decided that we still need to do the pump house out at the river,” Davis said. “And we need to make the water treatment plant improvements in town.”

Other improvements or replacements discussed were to the gauges, booster pumps, the tank at the river and water mains.

Davis didn’t rule out additional increases in water rates down the road.

“Yes, we may eventually, in another year or two down the line, we may have to raise them again a little bit,” he said.

Sitting just a few feet away from the large oval oak table were Scott Farrington and Sharon Dawley. They attended the meeting to let the council know they were ready to purchase the city-owned property at 108 E. Maple so they could open a new restaurant in New Sharon called Scooters Pub and Grub.

Unfortunately, the city wasn’t ready or able to make the sell at this time. Council member Larry Applegate said the city would have to go through the motions a second time.

Davis explained why the city had to go back to square one.