An ordinance setting the 2005-2006 tax rate at $1.40 was voted down by Red Boiling Springs City Council members at their regular meeting last Thursday, May 11, after they were informed by city clerk Coby Knight that the city would not be able to operate at that rate.

Councilman Ray Bilbrey advised Mayor Hollis to review the budget that he planned to present to the council and find some corners to cut, after Hollis told members that fuel was ‘eating us up.'

Knight reported that the water and sewer department funds... were okay; and that it was only the General Fund that was in trouble.

Payments for the new fire engine will start coming out of the General Fund next month, said Knight. She further advised that a nine cent property tax increase would not balance the budget.

Mayor Hollis reported that he had talked to the Interim plant manager of Nestle Waters, and he had it in mind to come on into the city, which would help the general fund a lot.

An ordinance amending the 2005-2006 budget was passed unanimously, and discussion of the budget was tabled.

A special called meeting was set for 7 p.m. on May 25, to further discuss the budget and set the tax rate.

In other business: