MARS — Residents should not see a tax increase in 2011, according to a preliminary budget adopted by council Monday night.

The budget keeps the property tax rate at 16.48 mills in the one-square-mile borough.

The $870,000 budget, which is up nearly 8 percent over the current budget of $686,866, allows a small surplus of $4,750.

The budget includes a 2 percent pay increase for full-time employees, including police Chief Kevin Radford. It also includes a $150 increase in the small annual compensation for each of the seven council members, who will now make $700 per year for operation of the borough.

Estimated revenues of about $875,000 may be augmented by public water tap-in fees to be paid to the borough by developers currently building the Alzheimer’s assisted living facility at LAS/St. John Specialty Care.

Because council and developers do not agree on the tap-in amount for the 27 new connections, it is uncertain how much the taps could add to the revenue side of the budget.

The tentative budget was unanimously approved by council members, who are expected to vote on the final version of the budget Dec. 27.