CALUMET CITY | Despite citing obstacles like ongoing union negotiations and other rising costs, the Calumet City Council approved a budget increase below the rate of inflation during a special meeting Tuesday.

For the fiscal year that started May 1, the council approved a corporate fund budget about 1.3 percent higher than the previous fiscal year, said 5th Ward Alderman and Finance Committee Chairman Gerald Tarka.

The corporate fund is the city's general operating fund and the largest portion of the budget. It handles the majority of the city's revenues and expenses. This fiscal year's corporate fund budget is $35.12 million.

Revenue remains flat, and payroll remains the largest expense for the city at about $20 million annually, Calumet City Finance Director John Kasperek said.

This fiscal year, union payroll is expected to increase pending negotiations, Calumet City Mayor Michelle Markiewicz Qualkinbush said. The city is negotiating with five labor unions now that 911 telecommunications employees have split away from clerical employees to form their own union, she said. The city has tried to cut costs through attrition, Qualkinbush said.

"If we don't have to fill positions, we haven't," she said. "We are holding the line on spending the best we can."

Meanwhile, other costs, such as gasoline and utilities, have increased, Kasperek said.

City officials scrutinized the budget line by line to make sure there were no excesses, 2nd Ward Alderman Leni Wosczynski said.

"For a 1.3 percent increase, I think that's a marvelous job with the economy today," she said. "Prices are raised, people are out of work. The cost of supplies, everything has increased. Everything is more money."

Qualkinbush said she was proud of the finance team and that the city still was able to increase the budget for public safety.

"Public safety is (about) 41 percent of the budget," she said. "We increased that ... by over $700,000 over what we spent last year. It just shows this administration's commitment to public safety."