HOXIE, Ark. (AP) - Officials say budget woes continue in the northeast Arkansas city of Hoxie, where water bills have doubled for some residents as the town tries to upgrade its aging utility system.

Last year, Mayor Lanny Tinker donated $5,000 of his salary to help the city with clean-up efforts. The Jonesboro Sun reports (http://is.gd/t6VgrP) that Tinker cut his salary by $2,500 a year this spring, and city council members reduced their compensation by 25 percent, or $38 a month.

Officials will meet in the coming weeks to assess Hoxie's finances and decide whether city employees will receive a raise.

Tinker says water rates went up when the city brought in water from the Spring River and when the city made upgrades to be in compliance with state and federal requirements.

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