City Council members approved a 1988-1989 fiscal general-fund budget of $1,370,417 Tuesday - down nearly $8,000 from last year.

The council also approved a water utility fund budget totaling $425,863 and a bond redemption fund totaling $81,140.The biggest items in the new general-fund budget include planned expenditures for administration, $178,800; police department, $366,070; fire department, $166,411; and streets department, $298,036.