FAIRBANKS - The city of Fairbanks is projecting a $1.3 million surplus in its latest budget in the first major executive action by new mayor Jerry Cleworth.
Cleworth was sworn in Tuesday after defeating incumbent Terry Strle in a close race earlier this month.
The city projects revenue at $32.3 million next year, mainly because of new housing at the U.S. Army post Fort Wainwright.
Cleworth also projects the city's expenditures to drop by $175,000.
Cleworth's budget would still require approval by the Fairbanks city council.
The budget must be approved by Dec. 15.
Cleworth says labor negotiations and wage increases could erode the surplus.