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The Nicholasville City Commission approved the first reading of its new budget Tuesday, which projects reductions in revenue for the coming fiscal year.

The overall budget calls for $21.3 million in revenue and $27.8 million in expenses, with another $5.4 million in other revenues and transfers.

It still leaves a deficit of a little more than $1 million, which will come from the estimated fund balance at the end of the current fiscal year, which ends June 30.

The city is projecting a loss of $1.089 million in the general fund from reductions in taxes, licenses and permits, and other revenue.

The first reading was approved unanimously June 9. A second reading must be approved before the end of the fiscal year.

Nicholasville Mayor Pete Sutherland said the new budget is in line with the current one, though departments have been asked to delay capital projects or purchases until later in the fiscal year.

“I think we’ve pretty much held to what we did last year,” he said. “Every department had a couple things on their wish list. We asked them to hold off until the fall.”

Some of those items included improvements to the fire department’s training facility and new equipment for the street department, he said.

The great unknown is the effect of the coronavirus pandemic on the city’s finances.

So far, the city has been holding its own, he said.

“Revenue has been OK to this point,” he said. “We won’t really know where we are until the next quarter.”

The pandemic and associated shutdowns started in March, which is the last month of the the quarter. The next quarter runs through the end of June.

In other action, the commission:

— approved the first reading of the utility government for fiscal year 2021.

— approved the first reading of an ordinance for conduct for itinerant businesses.

— approved the second reading of an ordinance to rezone 2.5 acres on East Brannon Road from B-2 to I-1.

— approved the second reading of an ordinance to rezone 2.05 acres on East Brannon Road from I-1 to B-2.

— approved the second reading of an ordinance to rezone 6.51 acres at Scott Road and Danville Road form A-1 to I-1.

— approved the second readings of a budget amendment for fiscal year 2020 for the general government and the utility government.

— approved a resolution for an occupational tax rebate for a company interested in locating in the industrial park.

— approved an easement for a 24-inch water line.

— promoted Danny Eades to battalion chief at Nicholasville Fire Department.

— ended the temporary battalion chief assignment for Mike Bales, who returned to his previous salary and rank.

— met in closed session to discuss pending litigation, but took no action.