Trickle-down from a sluggish economy has reached the Leitchfield level, and it surfaced Monday, Mar. 1, at the city council meeting.

City Clerk-treasurer Kerry White told the council "next year's budget will be the toughest we've faced since I've been here."

Keeping expenses in balance with income in the fiscal year starting July 1 will be tough, he said. He cited the upcoming closure of a major plant (trimming $65,000 in occupational taxes) from the income side, and drops, too, in the areas of franchise taxes and insurance license taxes.

He said franchise tax revenues are at $79,755 at the end of this second quarter from nearly $85,000 last year. Insurance tax revenue is about $6,000 below last year.

White projects city worker health insurance will jump $40,000 in the coming year over current bills.

The council will begin work on the fiscal 2005 budget in April and May. White said the city's current budget is "about where it ought to be at the half-year point."

Expenditures overall were near 51 percent and revenues were close to 50 percent. Current year revenues are nearly $128,000 less than expenses, but the differences were expected to level out in the coming six months, he said.

In other action, the council:

Swore in Brenda Green Huffman to replace Councilwoman Dot McCall, who has moved to the Utilities Commission.

Heard an update on the Grayson County Humane Society's operations. President Steve Lookabaugh said the society has received approval as a tax exempt group, allowing applications for grants. He said the society would not need additional city funds.

Agreed to use municipal road aid funds -- $3,000 -- on sidewalks and maintenance work at city hall (new front doors).