BUCHANAN — Bill Marx will continue his dual role as Buchanan city manager and police chief after city commissioners approved a new contract with him Monday.

The five-year deal calls for no salary increase in the first year followed by a 3 percent increase in the second year. His salary for the 2011-2012 fiscal year is $66,400.

Marx will continue to use his own car for city business, which Mayor Carl Cole calls “very generous.” His travel stipend will increase from $200 to $300.

Cole said the contract is “fair to the city and city manager.”

Marx took on the manager/police chief post after five years serving just in the police chief role.

Also on Monday, representatives from Plante Moran, the city’s auditor, gave a presentation of Buchanan’s annual audit.

Kenley Penner, a partner with the firm, said Buchanan was given a “clean audit” and praised the city for reducing day-to-day expenditures and investing more than $3 million in capital improvements.

Penner said the city did dip into its fund balance by more than $100,000 but pointed out it was the first time in several years. The fund balance remains at $1.73 million, which Penner said keeps the city in “very healthy shape.”