By LINDSEY SHELTON

NATCHEZ — The city of Natchez anticipates spending $4.1 million less than it brings in this year.

Natchez Board of Aldermen unanimously approved a budget — which includes $35.9 million in total revenues and $31.8 million in total expenditures – for the 2011-2012 fiscal year at Tuesday’s meeting in the Natchez City Council Chambers. The new fiscal year begins Oct. 1.

Total revenues and total expenditures are divided among the general fund, special revenue fund, debt service fund, capital projects fund and internal service fund.

The total projected tax revenue is $8 million. Ad valorem taxes for the year will be levied at the same millage rate of 42.732 mills.

However, Ward 6 Alderman Dan Dillard said he is still concerned with hospital insurance funding. He said he believes the $700,000 allocated for hospital insurance is shy of what will be needed this year. Dillard called the hospital insurance under-funding an “internal hemorrhage” in the city’s budget.

Dillard also said on a positive note, 2010-2011 would be the second year in a row for the board to make it to the end of the fiscal year without borrowing money.

In other news from the meeting:

-Sister Bernadette McNamara of the Holy Family Catholic School asked the board to consider finding funding to resurface Orange Avenue from Franklin Street and Franklin Street to Main Street. During his report, Ward 4 Alderman Ernest “Tony” Fields asked that there be an assessment of the roads as a first step in getting the roads repaired.

-Jennifer Ogden Combs, executive director of tricentennial activities, asked the board to find someone to fill an executive director position to coordinate marketing, public relations, educational curriculum and grant writing for the tricentennial celebration plans. Natchez will turn 300 in 2016, an opportunity for celebration that Combs said the city cannot afford to miss.

Ward 1 Joyce Arceneaux-Mathis said she shared Combs’ enthusiasm for the celebration but was concerned that the tricentennial budgeting issues were not brought before the board before the day the budget was to be approved.

The board approved a motion to go before Natchez Inc. and ask for a portion of the economic development fund be set aside to create the tricentennial executive director position.

-The board voted 5-1 to approve the hiring of Holland & Rigby Political Redistricting Consulting firm to manage the redistricting plans for Natchez. Mathis voted against hiring the firm because she said Holland & Rigby handled the last Natchez redistricting process 10 years ago, and she received calls from the U.S. Department of Justice with concerns about how the firm handled Census data. City Attorney Everett Sanders said the plans needed to be completed before election qualifying begins on Jan. 1.

The next aldermen meeting will be at 6 p.m. on Sept 27.