Butler City Council on Thursday introduced an $11.1-million budget that raises real estate taxes by .75 mills to 44 mills next year.

Council members unanimously voted in favor of the first readings of the 2021 budget, tax and salary ordinances at a regular meeting Thursday evening after holding a budget workshop in the morning.

During the regular meeting, city officials said the tax increase is needed to cover a $15,000 interest payment due next year on the ladder truck that was purchased for the fire department as well as bond and loan payments, and they hope to eliminate the tax increase after next year.

In addition, council voted to approve a $1 million tax revenue anticipation loan and agreed to buy a hydraulic salt spreader for $4,300.

Before voting on the budget, Councilman Jeff Smith said he was told Thursday after the budget workshop that the 50-year-old roof on the street department building is in need of replacement.

He said the estimated $250,000 cost would have required adding 1 or 2 mills to the city's debt service.

Council took no action on the matter.

Raising the cost of parking permits by $10 or $20 to offset a COVID-19-induced decline in parking revenue was discussed during the budget workshop, but, city officials said, no increase was included in the budget.

Councilman Mike Walter said permit costs will probably have to be raised, but the amount hasn't been determined.

Council members came to a consensus during the workshop to reduce anticipated parking revenue from $977,000 to $800,000, reduce earned income tax revenue by $50,000 to $1.05 million, reduce local service tax revenue by $25,000 to $269,000, and increase business privilege tax revenue.

In unrelated business, council agreed help spread the county commissioners' message to help reduce the spread of COVID-19 by wearing masks, social distancing, washing hands and staying home when feeling sick. The message will be posted on the city website and will be sent to residents enrolled in the CodeRed electronic alert system.

Council also agreed to close Main Street next year for the Bantam Jeep Heritage Festival on June 11 from 3:30 to 10:30 p.m.