EVANS CITY — In a rare set of circumstances, borough residents will see a tax decrease in 2015.

The council members voted Monday night to approve a final 2015 budget that includes a 2.88-mill decrease in the borough’s property tax rate.

The current millage rate is 22.88, which is among the highest rates in Butler County. The tax rate next year will drop to 20 mills.

A mill generates $1 in tax revenue for each $1,000 of a property’s assessed value. One mill brings in almost $10,000 in Evans City.

The current budget is $1.06 million, and the 2015 budget includes $1.05 million in expenditures.

Council President Lee Dyer said the tax reduction is possible by increased revenue from the natural gas drilling on borough property, and by savings expected through the formation of the Evans City Seven Fields Regional Police Department that will begin on Jan. 1.

“The financial health of the community also was improved by the strict expense management of the council and a cost reduction program,” Dyer said. “We have worked diligently and successfully to control spending.”

Councilman Paul Foster gave much of the credit for the decrease to the 2008 council, which approved the original lease for shale gas drilling above the former water plant.

One Rex Energy well pad with six wells is producing at the former water plant, and the borough is receiving royalties from those wells.

Revenue generated by Marcellus Shale gas drilling includes the sale of water at the former water plant, which is used to hydrofracture the shale underground to release the natural gas; the sale of trees removed at the site of the wells; and royalties from the gas the wells produce.

Dyer said in 2014, the borough’s natural gas-related revenue has totaled $275,000. The 2015 budget line item for shale gas revenue is $200,000.

Rex Energy officials were excited about the news of the tax decrease.

“This will most certainly be welcome news for taxpayers in Evans City and is one of the many examples of the broad-based benefits made possible by responsible shale development,” said Mike Endler, Rex’s Vice President for the Appalachian Basin. “Rex looks forward to continuing to work with the borough as we remain steadfast in our commitment to safely developing our leasehold across the region.”

Dyer said every department in the borough has a budget increase in 2015 except police, which has a $60,000 decrease because of the consolidation of police services with Seven Fields.

“We are realizing the savings, but almost doubling our police services,” Dyer said.

A decade-old dump truck will be replaced and a new pickup truck will be bought next year. Also, the former borough building on Wahl Street, which is now used for storage, will be renovated in 2015.

The building was heavily damaged in 2004 in the flooding caused by the remnants of Hurricane Ivan.

The second floor will be removed to provide additional space for public works vehicles and equipment, damaged surfaces will be removed, interior surfaces will be repaired and painted, and other repairs will be made. The third floor will be used for record storage.

“This will keep our records protected and well above the flood plain,” Dyer said.

Borough solicitor Mike Gallagher said the council must enact a new tax ordinance because of the tax decrease. Council will meet at 4:45 p.m. Dec. 22 at the borough building for that purpose.