The city of Adairville had the first reading of its 2010-11 budget at Monday's regularly scheduled city council meeting.

For the upcoming year, the city is expected to operate with a deficit.

The total estimated revenue for the next fiscal year is $828,074.

Expenditures are estimated at just over $1.14 million.

Adairville has nearly $1.9 million in carried over unspent funds which will offset the deficit.

"(The $1.9 million) is all of the assets, some of which can't be spent like the cemetery perpetual care money," Adairville mayor Jim Wilkerson said.

Wilkerson said several factors caused the city to lose about $100,000 of revenue from last year's budget.

"There was some things that caused that to go down," Wilkerson said. "The hosiery mill closing lost us some tax revenue. That was the same thing with the employees lost in the closing of the IGA."

One of the biggest areas of lost revenue is property taxes.

Largely because of homestead exemptions for senior citizens, Adairville will be getting only $57,500 in property taxes this year ­ down from about $76,000 a year ago.

The appropriations for the upcoming year break down like this: general government $290,734, police $94,706, fire $40,100, park $25,536, streets $60,500, economic development $15,500 and water & sewer $614,924.

For more on the city council meeting, be sure and read Friday's edition of the News-Democrat & Leader.