With a projected 31 percent increase in revenue over last year, the Winchester City Council is scheduled to vote on the first reading of the $14.5 million 2027 fiscal year budget on Tuesday.

The council will meet at City Hall at 5 p.m.

The council held a workshop on April 27 with budget drafts presented to council members depicting no tax increase and showing that revenue is projected to be at $16.39 million with expenditures at $14.5 million.

The budget includes a 4 percent costof- living/merit increase for employees.

However, health-insurance costs are expected to increase by 18 percent — a situation that Councilman Mike Foster said needs to be addressed because the pay increases would not amortize the escalated insurance costs.

“Can’t we do something to help them?” Foster asked, referring to city employees. “That doesn’t make sense. What you’re going to give them will do nothing for them.”

Foster said the end result would have a devastating effect if the City Council doesn’t do more to offset the impact of the insurance increases.

“We’re going to start losing people. That’s what’s going to happen,” he said.

Finance Director Jon Pritt said the numbers displayed “are just a baseline,” and the council has options to adjust the budget.

Pritt said revenue is up due to growth related to economic development, and the city has grant money coming in that is reflected in the increase — $3.94 million more than last year’s $12.54 million.

The budget also includes funding for four full-time positions, including a patrol officer, an engineering intern, a Human Resources employee and a fireman.

Top capital items include funding for phase one of an upgraded and expanded City Hall project at $2.7 million with the low bid submitted for the overall project coming in at an even $6 million.

The budget also includes $150,000 for a tracked skid-steer loader and another $150,000 for solar lighting at the city’s Bass Club, tennis courts and Adventure Mountain playground area.