Chelsea city council members got a first look last Tuesday at a proposed budget for 2007 that will be almost a 50 percent increase over this year&8217;s.

Chelsea Mayor Earl Niven presented the $4.5 million budget at the Sept. 5 council meeting for a first reading. Chelsea&8217;s operating budget for 2006 is approximately $3 million.

Niven says most of the $1.5 million increase in revenue is due to building permits and city sales tax, which will be boosted by a Wal-Mart Supercenter set to open next May.

The mayor acknowledges that Wal-Mart will add a substantial boost to the city&8217;s sales tax revenue, but he says the 2007 budget projections are still quite moderate.

&8220;I&8217;m on the conservative side until I see the projections start to roll in,&8221; said Niven.

Niven said the new income will go towards capital projects, including improvements to the fire department and city fire hydrant system.

The council will voted on the budget at its next council meeting, set for Tuesday, Sept. 19 at 7 p.m.

Subdivision Approved

The Chelsea City Council also approved a 10-lot subdivision to be built off Shelby County 336 and Shaw Drive. The council voted 4-1 to rezone six acres of Robert Shaw, Jr.&8217;s property from reserve to residential one. Councilwoman Juanita Champion was the only no vote.