East Petersburg Borough residents will see their third tax increase in 10 years in 2008.

The budget approved by council Dec. 18 raises the millage rate 0.125 mills to a total of 2.657 mills and amounts to a tax of $12.50 for every $100,000 of property owned.

In adopting the budget, council gave approval for the borough to secure a $450,000 loan to pay for one-time expenditures not covered by the general fund.

These items are a new dump truck with a plow and salt dispenser, recodification of borough ordinances, improving five playgrounds, upgrades to Old Meadow Court and Madison Court in Constitution Square, finishing construction of the pool comfort station, refinishing the pool walls and construction of a maintenance building.

In addition to the loan, $25,000 will be appropriated from the general fund for playground improvements.

Additionally, a portable generator will be purchased with monies from the water fund at a cost $25,000.

Council members voted in favor of the expenditures during their Dec. 4 meeting, noting that many of these items have been on the agenda for several years.

"We have a history of solid financial responsibility," council president Cathleen Panus said Dec. 4. "We should go for the whole ball of wax. This is the time to do it."

In addition to the tax increase, residents will see a 2.5 percent increase in their water bills.

Trash bills will remain unchanged. However, borough manager Jim Williams said an increase is likely in 2009.

"We will be entering into a new 2- to 3-year contract (starting in 2009)," so the price is likely to go up, he said.

Williams also announced council's regular January meeting will be held Jan. 7 in conjunction with the reorganization meeting.