Council Monday approved the 2001 budget exactly as proposed Nov. 20 with a 3.5 mill increase in property taxes to 39.5 mills.

A mill is $1 for every $1,000 in assessed property value; assessments are one-third of a property’s 1970 market value. At 39.5 mills, a property assessed at $5,000 would carry a tax bill of about $200.

One-half mill of the tax increase will pay for a retirement fund for borough employees and the other 3 percent will be used to cover fire department expenses.

Another major expenditure will be the purchase of a multi-purpose truck for the street department.

Council passed the 2001 tax ordinance and a resolution establishing borough employee wages for 2001, which include the 3 percent raises specified in the new budget.