Taxes won't go up in Sharpsville in 2002, but water bills will, according to the proposed 2002 budget.

Council approved a tentative spending plan of $1,056,881 on Wednesday. Council will not raise taxes, but water bills will go up 15 percent to cover costs at the water plant.

The average monthly water bill in the borough is $22.17. The increase would bring the bill to $25.53.

The money from the rate increase will go toward replacing water lines and to make up for a shortfall in the water budget, said Borough Manager Mike Wilson.

Council President Alex Kovach said water rates have not gone up in eight years.

To make up for a general fund budget deficit of about $125,000, council took $55,000 out of the capital improvement fund and $70,000 from the street program. About $5,000 remains in the street program budget, Wilson said.

Due to the new 100 percent tax assessment ratio, taxes will be at 14.03 mills next year instead of 42 mills. Previously, 35 mills went toward general spending, 4 went to street lighting, 2 went to the fire department and 1 went to debt service.

Now 11.7 mills go toward general spending, 0.33 for debt service, 0.67 for the fire department and 1.33 for street lighting, said Wilson said.

A mill is $1 for every $1,000 of assessed property value. Assessments are based on a property's 1970 market value. Under the old system, they were based on one-third of the 1970 market value.

At 14.03 mills, a house assessed at $30,000 would carry a tax bill of $420. A mill used to bring in about $9,500 for the borough; under the new ratio, a mill will bring in $28,500.

Council will vote on the final budget Dec. 12. Wilson said council will fine-tune the spending plan before adopting it next month.

Here is a breakdown of Sharpsville's proposed 2002 general fund budget of $1,056,881 with 2001 figures in parentheses:

SPENDING

• General government, $234,193 ($219,184,).
  
• Tax collection, $5,865 ($4,865).
  
• Municipal building, $10,825 ($10,825).
  
• Public safety, $500,416 ($461,938).
  
• Fire protection, $59,973 ($59,232).
  
• Planning and zoning, $23,030 ($23,442).
  
• Streets, $220,427 ($275,421).
  
• Water, $619,175 ($580,233).
  
• Sewer, $706,506 (659,566)
  
• Miscellaneous, $1,116,854 ($1,132,612).
  
• Highway aid, $85,838 ($87,706).
  FUNDING
  
• Real estate taxes at 14.03 mills, $335,000 ($335,000).
  
• Other local taxes, $342,800 ($337,800).
  
• Fines, interest and rents, $22,600 ($22,600).
  
• Grants $0 (1,500).
  
• Miscellaneous, $5,000 ($8,500).