SPIRIT LAKE - The Spirit Lake City Council approved a fiscal 2012 city budget of $2.18 million on Tuesday night.

The council decided to take $20,000 of its total foregone tax balance of $34,000 to supplement the budget. It didn't approve a property tax increase.

"It's a very tight budget," said Barbara Brown, city clerk. "We're trying to do everything the community needs without any pain in the pocketbook. Things are tight for everybody."

The current budget is $2.13 million.

"It will be a little more this coming year because of grant funding," Brown said.

The budget includes three grants - $500,000 for the downtown revitalization project, $745,000 for the 10th Avenue improvement project that includes paving and sidewalks and $50,000 for a police officer.

The grant for the officer is an ongoing grant for an employee that was hired more than a year ago.

The budget includes funding for a new maintenance employee, who will be hired in the future. The position will give the city's maintenance staff four personnel.

"We've had some growth to the point where three is not enough," Brown said. "We needed a fourth person."

Brown said employees will not likely get raises due to unsettled insurance costs.

"It depends on what happens with our Blue Cross insurance," she said. "There may not be enough money for raises."