ZELIENOPLE — Borough council Wednesday afternoon finalized its 2014 budget that includes increases to its fire and library taxes.

The fire tax increases from 2.36 mills to 3 mills and from 0.39 of a mill to 0.5 of a mill for the library.

The general operating fund will remain at 1.81 mills. The total tax rate is now 5.3 mills, up from this year’s 4.56 mills. Borough manager Don Pepe said this year’s budget, about $9.6 million, is down from last year’s $9.7 million budget. He cited lower health care and police department costs as contributing factors to the lower budget amount.

The borough is placing $150,000 in its capital reserve fund for future projects.

In his budget summary, Pepe explained the 2014 budget was planned to be close to status quo as possible to recover from the large debt amount from the water fund projects just completed as well as money spent on park improvements and the Main Street Revitalization Project initiative.

There is no additional funding budgeted for the Main Street Revitalization project for the upcoming year because there was no additional funds requested and two anticipated state grants are expected to cover the cost of the first phase of the project, which includes an additional public parking lot.

If any additional borough funds are needed for the project, Pepe said the council will have to address this later in 2014.

Among some of the capital purchases and work planned for next year include additional funding for police cars and equipment replacement along with funding for the replacement of the Green Lane and Market Street bridges.

The budget reflects a projected increase in electric rates because the borough’s wholesale supplier of power — AMP — is going to charge the borough 6 percent more in 2014 for the power that the borough resells to its residents. The borough expects to absorb a portion of the added costs, but customers’ bills are expected to rise by 2.5 percent in the first quarter of 2014, Pepe said.

The borough will begin negotiating a new electric supply contract in 2014 so that can be in place for 2015.

Pepe added electric capacity charges to the borough are expected rise in 2016 because of the closing of coal-fired electric generating plants nationwide. Rate adjustments for that additional cost likely will be necessary for 2015 and beyond.

Water rates also are headed up as the water supplier, Beaver Falls Authority, will be charging 4 percent more in 2014. The entire amount is to be passed on to customers, Pepe said. This increase will be reflected in next year’s first-quarter billing.