MIFFLINBURG -- Mifflinburg residents will see a 3 percent increase in electricity and sewer rates and a 2 percent increase in water rates to fund an $18.2 million spending plan for next year.

The 2009 budget was adopted Tuesday by the Borough Council, which cited increases due to inflation and funding for the ongoing $15 million sewer plant upgrade.

Mifflinburg does not levy a millage tax on property owners because the borough generates revenue through its electric, water and sewer services, according to Margaret Metzger, borough manager.

The 2009 budget includes a one-half percent earned income tax, a $10 occupational privilege tax and a real estate transfer tax. Those rates will remain the same as this year, Metzger said.

The budget includes allocations for several capital projects and basic expenses, including water meter testing and replacement, electrical system upgrades and improvements to the borough's miniature golf course.

Mifflinburg also is budgeting funds for an escrow account to go toward a state Department of Transportation planned reconstruction of Chestnut Street, as well as savings toward the rehabilitation or construction of a borough building.

According to the budget, some of the highlighted items include $6 million for electricity, $1.2 million for sewer, $1 million for the water project reserve and $890,000 for the sewer project reserve.

Last winter, the council approved an $18.7 million budget with a 20 percent increase in electric rates -- attributed to Amp Ohio increasing its wholesale price of electricity to Mifflinburg by 30 percent -- and a 2 percent increase in sewer rates along with a 2.5 percent increase in water rates.

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