EVANS CITY — While council members were able to reduce property taxes by 2.88 mills for the 2015 borough budget, reduced revenues this year and next have forced council to reduce the 2016 budget by more than $500,000.

The council Monday night passed a $988,000 budget for 2016, which is down from this year’s $1.5 million. There will be no tax increase next year.

The tax rate, which was reduced for 2015 from 22.88 mills to 20 mills because of shale gas revenues to the borough, will remain the same. One mill brings in about $10,000 in Evans City.

Council President Lee Dyer said the finance committee worked hard to balance the budget in the face of reduced revenue.

During preparation for the 2015 budget, the line item for shale gas revenues was $200,000. But the gas revenue budgeted for next year is just $70,000.

Revenue generated by Marcellus Shale gas drilling in the past few years comes from the sale of water at the former borough 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.

Council president Lee Dyer said on Monday that various expenses in the 2016 budget were decreased to accommodate the drop in revenue, including road paving and employee raises.

The fees budgeted for solicitor Mike Gallagher also were decreased for 2016 because the borough’s seven-year legal issues with CSX Corp. and the Buffalo and Pittsburgh Railroad concluded earlier this year.

Dyer said it was a struggle to create a balanced 2016 budget.

“It’s a lean budget, but we’re holding the line,” he said.