By Travis Gettys
Enquirer contributor

NEWPORT - After several years of tackling ambitious projects, city commissioners have approved a budget that would pay off bonds related to a stalled retail and residential development, and give pay raises to some city employees.

The $29.9 million budget, unanimously approved June 28 by city commissioners, includes $12 million to repay bonds used to acquire property in the Cote Brilliant neighborhood, said Greg Engelman, the city's chief financial officer.

"We're anticipating repaying that in this fiscal year," Engelman said.

The budget for the 2004-05 fiscal year, which began July 1, is significantly larger than last year's $16.9 million budget, Engelman said, but officials expect most of the increase to be offset by development of the site.

"We're anticipating that we'll have a developer that will buy the property," Engelman said.

Negotiations are under way to develop the 55-acre site near I-471, but no deal is imminent, Engelman said.

The remaining budget, which Engelman said is about 5 percent larger than last year's, will go toward paying city employees and completing street improvements and parks projects.

"It's really just a continuation of some of the stuff we've started over the last couple of years," Engelman said.

City commissioners also approved a 3 percent pay raise for all non-union city employees, Engelman said. Contracts negotiated with city employees' unions remain valid until the start of the 2006-07 fiscal year and contain built-in increases, he said.

Unlike recent years, the budget does not include any money for capital projects, Engelman said.

"Citizens can expect the same level of services with no increase in taxes," he said.