HUTCHINSON — With flat revenues and increasing expenses, it is expected to be another tough budget process for the city of Hutchinson.

City Manager John Deardoff said the 2020 budget calls for a 1 mill increase from last year. Putting a further crimp in the process is a decrease in the city’s valuation from $310 million to $307 million.

The budget calls for an average pay increase for employees of 3.5 percent, depending on where the employee is on the pay scale. It also proposes more than $14 million in capital improvements.

The proposed general fund budget is $35,307,335, compared to just more than $35 million last year. There is a budget gap of about $481,000 that the council will have to deal with to avoid a mill levy increase.

The council will meet over the next several weeks to discuss the budget and where any additions or cuts can be made.

The city hopes to have the budget in place within the next six to eight weeks.