Mercer council struck a compromise on the 2001 budget, agreeing to a 7-mill tax hike instead of a 14-mill increase.

Council couldn’t reach a consensus earlier this month but Tuesday adopted a $602,320 budget and set property taxes at 46.1 mills, contingent on a court ruling.

Mercer County Judge Thomas R. Dobson is expected to rule today on council’s request to raise property taxes 5 mills over the 30-mill limit for general purposes.

Threatened layoffs were set aside by cutting the tax hike in half and by relying on part-time patrolmen instead of paying overtime to full-time policemen for extra duty. Police withdrew a grievance insisting full-timers be called first for overtime duty. Instead, council may call out part-timers.

The borough has six full-time policemen, including one on disability, and two part-timers.

If Dobson permits council to exceed the tax limit, the property taxes would breakdown to: 35 mills for general purposes; 6 mills for street lights; 1 mill each for parks, library and fire protection; 2 mills for debt; and 0.1 mill for the Mercer Shade Tree Commission.

A mill is $1 for every $1,000 of assessed property value; assessments are one-third of a property’s 1970 market value. At 46.1 mills, a property assessed at $10,000, would carry a tax bill of $461.

Overall, the 2001 budget represents about a $60,000 reduction in spending.