On June 27, Los Altos city councilmembers approved a $23.7 million budget plan for the fiscal year 2006 to 2007. Councilmembers also voted to change a city financial policy to provide that half of the utility user tax revenue will be budgeted each year for capital improvement projects.

Now at the halfway mark for its two-year budget plan, the council also adopted an ordinance to set the utility users tax rate at 3.5 percent.

City Manager Phil Rose said there were no significant changes in the budget plan for this year from the last.

The councilmembers will hold special meetings July 20 and 27 to prioritize capital improvement projects.