Councilman-elect Peter Longiotti vowed to reopen the $3.18 million 2002 budget that Greenville council approved Monday afternoon.

That will suit current council members -- who adopted the budget just 12 hours before the deadline set by state law -- just fine.

Unless the budget is reopened and retooled, projected spending projected will exceed revenue and the borough will run out of money well before the end of the 2002.

Reopening the budget will give council time to ask Mercer County Common Pleas Court judges for permission to exceed a 5 percent cap on tax increases. The budget approved Monday includes a 26.5-mill property tax rate, which represents a 4.6 percent increase. A mill is $1 for every $1,000 of assessed property value.

"I'm voting to approve this budget only because at the stroke of midnight we would need to shut down. This is not a workable budget," said Councilman Thomas McMurdy.

McMurdy asked incoming councilmen Longiotti or David Henderson, who won election in November and take office this month, to reopen the budget when they are sworn in.

If the budget is reopened, council has until Feb. 15 to revise it, said Warren R. Keck III, borough solicitor.

The 5-percent cap on tax increases stems from the decision in March by Mercer County Commissioners to change the property tax assessment ratio from one-third to 100 percent of a property's 1970 market value, Keck said.

To stop municipalities from taking advantage of the changed assessment ratio, which effectively lowers all millage to a third of what it was, state law caps tax increases in the first year of an assessment change for municipalities at 5 percent and school districts at 10 percent.

The draft budget advertised this week by council called for a nearly 15 percent increase in tax millage -- 3.75 mills -- based on an adjusted 2001 millage of 25.33 mills.

That budget included a 3-mill tax to support the fire department. Council Monday reduced that tax to 0.5 mill, which dropped the tax increase to 1.25 mills.

That cut revenue by $98,000 and put the budget in a deficit, Keck said.

Other property taxes adopted by council were: 10 mills for general fund, 2.75 mills for street lights, 10.5 mills to pay off debt, 2.5 mills for recreation and 0.25 mill for library. The borough is continuing to use the debt tax to pay off a $3.5 million bond issue, which funded the local share of the costs for $5.5 million in recreation projects and an $850,000 fire station.

During the last month, council discovered the borough needs to levy a library tax so the Greenville Area Public Library can receive state funds, said Councilman David Welton.

Councilman Bryan D. Langietti voted against the debt tax and, with Welton, against the recreation tax.

"The budget should have been worked on more. It's like I wasted the last two months," Langietti said.

If millage remains at 26.5 mills, a property owner with a $15,000 home would pay $398 in taxes to the borough. Under 2002 millage, the same property owner's tax bill would have been $380. Tax bills will vary depending on a property's appraisal.

One of about 25 residents at the meeting asked if council considered elderly residents on fixed incomes when they raised taxes.

"Greenville is on a fixed income," Langietti responded.

The borough is facing increasing costs with limited options for raising revenues, he said. Increases in health care and liability insurance and workers compensation are among the budget increases cited last month.

In light of the uncertainty over the 2002 budget, council tabled labor contracts with Greenville-West Salem Township police, street department and sewer workers and an annual agreement to provide police services to West Salem Township.

Sewer workers agreed to a wage freeze in a one-year extension of their contract. Police and sewer workers will be working under terms of their old contracts, which expired Monday.

McMurdy, whose term on council expires this month, expressed hope that budget problems can be worked out by new council members and new borough manager Kenneth Weaver, who was hired Monday.

"We will have a new borough manager and two new councilmen with new sets of eyes looking at this budget," said McMurdy, whose term expired.

Greenville property owners have seen their tax bills rise for each of the last two years to pay off debt on a sports complex built in West Salem Township, a new fire station, and future downtown "streetscaping" and recreational trails.

"A year ago, you were telling us that we're a viable community and able to take on these major projects. Now in 14 months, we're a retirement community," said resident William Johns.

He asked council to find out what happened.

"The only way to correct the future is to look at the past, and point some fingers at people, who spent money on their offices. Then, put in safeguards so this doesn't happen again," he said.