Jackson's board of aldermen will hold a public hearing Monday on the city's 2008 budget.

According to Jim Roach, the city's administrator, next year's bills will total $31.88 million. The city has conservatively estimated $28.41 million in revenue, he said. The $3.47 million difference does not means city is in the red, he said.

"Bond money set aside for some construction projects and some accounts have funds carried over from previous years for ongoing projects," he said.

Among the rising costs city officials face is the price of health insurance. After Trustmark Insurance Co. predicted a 26.5 percent increase, Roach said the city asked for bids from other companies and switched to Great West Healthcare.

"We ended up with, roughly, a 9.5 percent increase," he said. Employees' deductibles will drop from $1,200 with Trustmark to $1,000 with Great West.

Health insurance costs the city $1.2 million a year and is the city's second-highest bill, after salaries, Roach said.

He said one of the ways the city will hold costs down is by not hiring any additional full-time workers. The budget includes money for temporary help in the data processing department ($8,000), library ($30,000) and cemetery ($18,000).

Among next year's major projects will be the beginning of Old Orchard Road, between the East Main Street interchange and Bainbridge Road.

Engineering and construction bills will be partly funded by a $1.2 million check from MoDOT -- money left over from the East Main Street interchange construction.

"We won't build that in 2008, but hopefully we'll be at the point to do the design and acquire the right of way," he said.

The road, in addition to expanding traffic routes near the interchange, is considered a key to future development of the area. Roach said it would be impossible to estimate the potential value without knowing developers' plans.

"They don't just go in, willy nilly, and start pouring concrete. They have a business plan, detailed down to the square footage," he said.

With that kind of information "we've got a number to latch onto, in terms of revenue. But we don't have that. Development is a byproduct of the road. Our No. 1 goal with East Main is transportation improvement."

Roach said while the northeast corner of the city has been in the spotlight, it's not the only major improvement. He said an Oak Street walkway, planned for installment next year, will link west-side public schools to Jackson City Park at Union Avenue.

The Jackson Board of Aldermen meets at 7:30 p.m. Monday on the second floor of city hall, 101 Court St.

pmcnichol@semissourian.com

335-6611, extension 127