Because of that, the city has funded planning and zoning more than in recent years.
The revenue budget for planning and zoning is $75,000 less than fiscal year 2007, but expenses, including salaries, retirement matches, insurance, etc. has increased by more than $73,000.
The fire department's budget increased by more than $111,000 to $3.13 million. More than $66,600 of the department's budget is going toward capital improvements, including a $20,000 purchase of a utility truck to help haul equipment.
The police department will spend $200,000 on new police cruisers during the 2008 fiscal year. The police department also saw a salary spike of $90,000, but city Finance Director Laurie Young said that was due to the department's reorganization of is organizational chart.
The commission also approved a 2.5 percent cost-of-living allowance for all of its employees, except the fire department.
"They have their own pay scale system based on a performance review," Young said. "They get a pay increase based on their job performance."
She added the scale is adjusted periodically to account for inflation.
The commission also approved the second reading of the city's utility fund budget for the 2008 fiscal year.
The $19 million budget, which is separate from the general fund budget, is funded by service fees rather than by taxes.
The downswing on residential building has caused small increases across the board, according to Nicholasville Utility Director Tom Calkins.
"We do not know what the total long-term and short-term increase in customers are going to be," he said. "As we get a better handle on that , we'll amend out revenue projection. We're just trying to be conservative."
Projected new customers, residential, business and industrial, rose from 6,403 during fiscal year 2007 to 6,495 for fiscal year 2008.
Projected revenue is slightly more than $10 million, up from $9.98 million in 2007.