There likely will be no changes in taxes for city residents and businesses in 2014.

City council will have its first public reading of next year’s $7.67 million budget on Thursday night.

In that budget, which drops from $7.89 million this year, the property tax will continue at 38.75 mills, the business privilege tax will remain at 7 mills, and the mercantile tax will stay at 1.5 mills.

The city will use $248,446 in surplus funds to help cover the difference in revenues and expenses. Last year the city used $492,584 from the surplus to balance the budget.

The city also will rely on a $600,000 tax revenue anticipation loan to keep the budget afloat until tax revenues start coming in April.

City clerk Mindy Gall said the biggest reduction in expenses in the general fund came through street lighting and traffic signals.

Only half of the $210,000 expense for street lighting will come from the general fund, while the other $105,000 will come from the city’s Liquid Fuels Tax fund. All of $7,000 needed for traffic signal power will come from liquid fuels taxes.

Gall said the other differences in the budget from 2013 are typical fluctuations.

Revenue from earned income taxes, mercantile taxes, local service taxes, and business privilege taxes, is expected to grow from $2.46 million to $2.54 million.

Funding for the police department will stay at just over $2.08 million, while the fire department expenses will rise from $1.72 million to $1.77 million.

The biggest increases in the fire department are to hosemen’s wages, which goes from $85,898 to $154,078 due to the addition of full-time workers, and overtime wages, which went up from $50,000 to $95,000.

The wages for part-time firefighters dropped from $90,000 to $35,000.

The cost of firefighters health insurance premiums will rise from $123,253 to $152,363.

Funding to the streets department will decrease by about $12,000 to $402,662.

The department of parks and public property will increase from $351,869 to $395,147. Wages in the department increased from $148,907 to $173,472

The line item for a $24,000 vehicle marks the next biggest change to the department.

Expenses for the city’s office of business and community development will rise from $308,330 to $320,426.

The city’s capital projects fund will drop from $707,000 to $410,040, due mostly in part to funding for the West New Castle Street Bridge Project dropping from $260,000 to $50,000 and the Sullivan Run Flood Protection Project dropping from $195,000 to $67,540. Gall said the West New Castle Street Bridge won’t be fully funded until 2015, while the Sullivan Run project was simply reduced because council doubted it would begin in 2014.

The city also will continue a two-year, 100 percent tax abatement program for all new businesses, despite the program spurring little growth downtown this year.

Under the abatement program, new mercantile businesses also would receive the third year of a 16.5 percent abatement, leaving businesses paying the equivalent of 1.25 mills.

For service business subject to the 7 mill business privilege tax, new businesses also would receive a third year at 82 percent abatement, a fourth year at 78.5 percent abatement, and a fifth year at 75 percent abatement.

The budget is subject to change before council takes its final vote on Dec. 19. The budget will go into effect Jan. 1.