Memorial hospital officials Monday presented the City Council with a budget of $613 million for next year, an increase of $118 million -- 23.8 percent -- over this year's budget of $495 million.

Although the hospital's proposed budget is an increase over this year's, the cityowned hospital's revenue is expected to drop by nearly 20 percent next year. Still, hospital officials told city leaders during a work session Monday that they expect the hospital to be profitable by $23.9 million in 2006.