ANDERSON — The City Council passed its nearly $65.7 million budget on first and second readings Thursday with no mention of trash pickup fees or mass layoffs.

The budget, which includes a $36.9 million general fund, will be considered for the final time at the next City Council meeting on Nov. 13. No one came forward in support of or against the budget at a public hearing held just before the city voted.

After Madison County failed to adopt an increase in county option income tax, which would have brought more revenue to city coffers, city officials discussed alternatives to making up a projected budget shortfall by 2010, resulting from Indiana’s House Bill 1001, which capped property taxes.

Two alternatives — charging residents for trash pickup or laying off city workers — were discussed at a special City Council meeting last week, and neither was considered at Thursday’s City Council meeting.

The projected budget will leave the city with a $634,000 balance at the end of the year, after a 3.5 percent increase in the general fund, including 3 percent raises for union employees, $700 raises for nonunion employees and a 17 percent increase in health insurance and operating costs, Controller Karen Carpenter said.

The city also authorized Carpenter to go after $2.5 million in undistributed tax levy from 2006 and 2007, though neither Carpenter nor financial consultant Jim Steele knew how much the city would get.

In other business, the City Council set a hearing for Nov. 13 for a three-year tax abatement for Anderson business Northstar Aerospace Inc., for new equipment that would bring more production and 35-40 $45,000 technical jobs to the city. The jobs were part of the company’s projections when locating in Anderson to make gear boxes for Rolls-Royce.

“They’re in a continuous growth mode,” said Linda Dawson, director of economic development.

The City Council also set a Nov. 13 tax abatement hearing for a 10-year abatement for a 2,000-square-foot Nestlé expansion, which was expected to bring Nestlé’s Anderson investment to $600 million with 130 jobs, figures projected by Nestlé upon locating in Anderson.

A 10-year tax abatement was granted for new equipment purchased by Nestlé.

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In other Anderson City Council business:

— The council approved on first and second readings rezoning from residential to industrial for 405 E. 38th St., from residential 2 to residential 3 for 3216 Sherman St. and from residential 2 to residential 4 for 712 Ranike Drive.

— The council approved an ordinance establishing an Anderson Airport nonreverting fund to pay for fuel and temporary help.

— The council allowed Controller Karen Carpenter to withdraw funds held within the police and fire pension funds for the general fund.