Alabaster leaders passed the city&8217;s $20.5 million operating budget Monday night.

Council members unanimously approved the budget, which calls for less new hires and projects than in past years.

The council approved a 2 percent cost of living increase for employees, with the city projected to end 2007 with over $22,000 in surplus.

Alabaster mayor David Frings said the city also has a reserve of $2 million for emergencies.

With the new budget, the city&8217;s debt service will jump to $2.6 million, doubling the $1.3 million in the 2006 edition.

Frings said with the opening of the second portion of the Colonial Promenade Alabaster Shopping Center in the Fall of 2007, there would likely be more room for new projects and staff hirings in the 2008 budget.

The new budget is up from 2006 projections, which sit at $19.7 million, Frings said