The Jemison City Council approved the 2011-2012 fiscal budget in a meeting Monday night.

Mayor Eddie Reed said the new budget is about $107,000 less than last year’s budget of $2.8 million, largely because of the economic downturn.

Even with revenue from sales tax, Reed said the city is still lacking in necessary funding.

“We have cut and cut and cut,” Reed said. “We’ve taken out practically $400,000 and still cutting.”

In old business, council members appealed an ordinance for a tax on cigarettes due to a recording error.

“It was already there,” Reed said of the tax. “(We are) appealing it to let it go back to what it was at the beginning.”

In new business, the council:

•Approved an ordinance for a user charge system in which charges for sewer usage inside and outside the city limits will be half of the water usage charges.

•Held an open hearing for a city employee. The mayor has recommended the council terminate employment based on charges including impersonating a police officer and using a city vehicle for purposes unrelated to city business.

•Approved an ordinance adopting an international building code and fire code, and violators will receive a fine of $500, imprisonment for no more than 30 days or both.

•Nominated Doris Brasher to serve on the County Board of Equalization.

•Held a public hearing concerning the transfer of a liquor license.

•Approved the Oct. 17 council agenda, council minutes from Oct. 3 and moved to pay the city’s bills.