The Mandeville City Council approved a $28 million budget for the 2011 fiscal year that includes $44,000 for car expenses and $50,000 for a new cultural development director.

The line item for car expenses reflects the city’s new policy of providing vehicle allowances instead of take-home vehicles for department heads.

The new cultural development director’s job will be to promote cultural and economic development through various program and public relations projects. The director will be charged with obtaining sponsorships for city special events and working with local business owners to secure grant funding and promote the Mandeville area.

The budget projects a 1.6 percent decrease in sales tax revenue but a 2.8 percent increase in ad valorem tax revenue.

Finance Director Milton Stiebing said that the increase in ad valorem tax is due not to increased assessments but rather new construction and the predicted build out of the Chenier development.

The 2.8 percent increase represents an increase in income of $74,000 for the city.

In his budget letter to the council, Donald Villere said, “the city of Mandeville’s economy, unlike the parish and state, has held steady over the last year.”

The budget also does away with the $97,950 salary for the city attorney that was included in last year’s budget, and replaces it with a $130,000 increase in the line item for legal fees. The city attorney also had a take-home car, but no vehicle allowance has been included in the 2011 fiscal year budget for Eddie Deano, who the City Council approved to serve as the city’s new attorney on a contract basis.

The proposed budget includes a 2.5 percent pay increase for all eligible employees, this is half of the annual 5 percent two-step increase city employees have receive in the past.

The decision to offer a smaller raise than usual was based on the large amount of money the city is paying out for fringe benefits, including insurance and retirement.

Currently the city is paying 100 percent of retirement, but Mayor Donald Villere said that is something the city may look into changing as a way to control expenses.

The budget also includes a payout of approximately $330,000 that the city needs to come up with for its share of the state police retirement system, which came up short after loosing money on some bad investments.