The New Year is a time of fresh starts -- even for local town governments. Towns in the South Hills traditionally begin the New Year operating under a new budget, usually approved by local councils in the rush of the year-end holiday season.

We called South communities to see if there were any challenges to getting those 2008 municipal budgets, and whether residents can expect a higher tax bill.

This week we highlight the 2008 budgets of South communities, including any increases, decreases or challenges the municipalities faced in passing a balanced budget.

While we found tax hikes were not prevalent, many communities said that passing a balanced budget is increasingly difficult, and admit the towns face the ugly prospect of raising millage rates in the coming years.

West Mifflin and Whitaker raised millage rates to cover rising expenses. Communities such as Castle Shannon, Baldwin Township and Versailles report that the costs of operating a government for a small, mature community is difficult because costs continues to rise, while revenue remains static.

Upper St. Clair is looking to raise its millage next year to cover the costs of its new recreation center. Mt. Lebanon has debated replacing its municipal pool, but tabled the issue until next year.

The residents of South Fayette received a tax decrease, as its board of commissioners found a different way to generate tax dollars.

Municipalities generate a majority of their revenue by levying taxes on their residents through a combination of real estate and earned income taxes. They also levy a local services tax of up to $52 annually on individuals who work in the community.

The earned income tax varies in the range of 0.5 percent to 1.3 percent. These tax dollars are generally divided between municipal and school district budgets. Other sources of revenue for municipalities include recreation fees, sewage assessments and state grants.

Real estate taxes are paid as a percentage of a property's assessed value. While individual municipalities and school districts set their own municipal tax millage rates, Allegheny County council sets property assessments, which have been fixed for several years.

A number of municipalities reported that while governmental expenses, such as fuel and personnel costs, continue to rise, static property tax revenues makes passing a balanced budget without raising millage increasingly difficult with each passing year.

Borough council approved a 2008 general fund budget of $9.9 million, with no tax change, keeping the borough's property tax rate at 6.61 mills. The average property owner's municipality tax bill is about $562.

Almost a third of the budget, or $3.1 million, provides funding for the police department. About $400,000 has been allocated for the borough's road paving program.

The median price of a home in the community is $85,300. The population is about 20,000. Of the 8,193 total housing units, 6,761 are owner occupied. The borough is 5.44 square miles.

For more on the borough, call the town hall at 412-882-9600 or visit www.baldwinborough.org.

Baldwin Township approved a 2008 budget of $2.89 million, with no tax change, keeping the borough's property tax rate at 8.5 mills.

Township Manager Mary McGinley said that passing a balanced budget is becoming increasingly difficult for small towns like Baldwin since property assessments have not gone up in several years. Costs such as fuel and salt continue to rise, she said, while the township's revenues do not increase. "There is going to come a point in time when you have to raise taxes, whether you want to or not," she said.

The median price of a home in the township is $82,600. The population is about 2,244. Of the 869 total housing units, 821 are owner occupied. The township is 1.02 square miles.

For more on the township, call the town hall at 412-341-9597 or visit www.baldwintownship.com.

Borough council approved a 2008 budget totaling $11.8 million. The budget does not contain any tax increases from 2007, keeping the borough's property tax rate at 8.5 mills. A resident with a house value of $100,000 pays $850 in municipal real estate taxes.

Council announced last year that it intends to aggressively pursue collection of delinquent taxes in 2008. Also, council President Jay Lieb has suggested the borough investigate consolidating policing services with another community to save on public safety expenses.

The median price of a home in the community is $73,200. The population is about 10,466. Of the 4,658 total housing units, 2,949 are owner occupied. The borough is 1.43 square miles

For more on the borough, call the town hall at 412.884.1500 or visit www.brentwoodboro.org.

Castle Shannon council approved a 2008 general fund budget of $3.49 million. The budget does not contain any tax increases from 2007, keeping the borough's property tax rate at 7.9 mills. The average property owner's municipality tax bill is under $670.

One mill equates to about $292,000 in the borough. The 7.9 mills includes 5.6 mills for the general fund, 1.41 mills for debt service, 0.514 mill for the library and 0.366 mill for street lighting.

While the budget does not contain any tax increases, council President R.J. Zezulewicz Jr. said that he expects tax increases in future years. "It is becoming increasingly difficult to pass a budget without any tax increases," he said.

Borough Manager Tom Hartswick said that mature communities like Castle Shannon face the challenge of increasing expenses and static tax revenues. With no new residential development and fixed real estate assessments, he said, revenue sources are limited and expenses continue to rise.

The median price of a home in the borough is $79,600. The population is about 8,556. Of the 3,859 total housing units, 2,481 are owner occupied. The township is 1.51 square miles.

For more on the borough, call the town hall at 412-885-9200 or visit borough.castle-shannon.pa.us.

Borough council approved a 2008 budget of $6.7 million, with no tax change, keeping the borough's property tax rate at 14 mills. The average property owner's municipality tax bill is a little over $857.

Council earlier this year had discussed trying to find a way to lower millage, which is one of the highest in Allegheny County, but was unable to do so. Dormont a few years ago was forced to raise its millage to address budget deficits, but is now on firmer financial ground.

Borough Manager Daniel Mator said that lowering taxes would hurt the borough's road projects, which are very much needed.

One mill equates to $267,398 in the borough. The 14 mills includes 8.28 mills for the general fund, 3.84 mills for debt service, 0.3 mill for the library and 1.59 mills for the fire department.

The median price of a home in the borough is $80,500. The population is about 9,302. Of the 4,089 housing units, 2,367 are owner occupied. The town is just 0.76 square miles.

For more on the borough, call the town hall at 412-561-8900 or visit www.boro.dormont.pa.us.

The City of Duquesne approved a 2008 budget of $5.4 million, with no tax change. The city has a two-tiered tax system. Residents pay 11.47 mills on the value of their house or building, and 19 mills on the value of their land.

One mill equates to about $80,000. About $600,000 is set aside for the general fund, and $375,000 is set aside for debt service. The remaining tax dollars are allocated for police, fire and other public services.

The median price of a home in the community is $33,000. The population is about 7,332. Of the 3,170 total housing units, 1,664 are owner occupied. The City of Duquesne is 1.88 square miles.

For more on the City of Duquesne, call the town hall at 412-466-4746.

Borough council approved a 2008 budget of $467,000, with no tax change, keeping the borough's property tax rate at 6.3 mills. The average property owner's municipal tax bill is about $265.

One mill equates to about $42,500 in the borough. All municipal tax dollars are put into the general fund.

The median price of a home in the community is $63,000. The population is about 1,218. Of the 484 total housing units, 437 are owner occupied. The borough is 5.02 square miles.

For more on the borough, call 412-751-2655.

Commissioners approved a 2008 general fund budget of $27 million, with no tax change, keeping Mt. Lebanon's property tax rate at 4.97 mills. The average property owner's municipal tax bill is about $700.

All municipal tax dollars are put into the general fund. The municipality's largest expense is public safety, which includes salaries for police officers and firefighters.

Municipal Manager Stephen Feller said that Mt. Lebanon commissioners had considered allocating funds to replace its municipal pool, which could cost in the range of $6 million to $10 million. Council decided to remove this item from the 2008 budget, he said, and to consider it again in 2009.

Mr. Feller also said that with county property assessments fixed at 2002 rates, the community does not benefit from the rise in property values seen in Mt. Lebanon. Because expenses continue to rise, he said, static revenue from property taxes make passing a balanced budget increasingly difficult.

The median price of a home in the community is $145,000. The population is about 33,017. Of the 13,610 total housing units, 10,255 are owner occupied. The community is 5.88 square miles.

For more on Mt. Lebanon, call the town hall at 412-343-3400 or visit mtlebanon.org.

Borough council approved a 2008 budget just under $1.05 million, with no tax change, keeping the borough's property tax rate at 5.11 mills. Borough Manager Joan Winters said that passing a balanced budget posed no unusual challenges to the borough.

One mill equates to about $75,000 in Port Vue. All municipal tax dollars are put into the general fund. Among the borough's largest expenses are street maintenance and the police department.

The median price of a home in the community is $51,300. The population is about 4,228. Of the 1,826 total housing units, 1,507 are owner occupied. The borough is 1.14 square miles.

For more, call town hall at 412-664-9323.

The South Fayette board of commissioners approved a general fund budget of $6.7 million, with a millage rate of 3.84, down from 4 mills in 2007.

South Fayette was able to offset the budget shortfall created through its tax decrease by increasing its local services tax to $52 a year, up from $10 in previous years. Township Manager Michael Hoy said this was done to help alleviate homeowners' tax burden. This shift, he said, was meant to target senior citizens who often find it difficult to pay real estate taxes.

A resident with a house valued at $100,000 pays $384 in municipal real estate taxes.

One mill equates to about $843,000 in the borough. All municipal tax dollars are put into the general fund.

The median price of a home in the community is $118,000. The population is about 12,271. Of the 4,704 total housing units, 3,622 are owner occupied. The township is 20.95 square miles.

For more on South Fayette, call the town hall at 412-221-8700 or visit www.south-fayette.pa.us.

The Board of Commissioners approved a 2008 budget of $98,418, with no tax change, keeping the borough's property tax rate at 4.2 mills.

One mill equates to about $8,000 in South Versailles. All municipal tax dollars are put into the general fund. The township's largest expense is public safety.

The median price of a home in the community is $66,500. The population is small, at about 351. Of the 151 total housing units, 139 are owner occupied. South Versailles is just 0.85 square miles.

For more on the community, call the township secretary at 412-466-7377.

Township commissioners approved a 2008 budget of $15.37 million, with no tax change, keeping the borough's property tax rate at 2.6 mills. The average property owner's municipal tax bill is $455.

The largest expenses for the township are the police force and public works.

Township Manager Mark Mansfield said that the township plans to issue a bond in 2008 to raise funds for the new community recreation center. Commissioners expect to raise the millage rate for 2009 to pay back this debt, he said.

The median price of a home in the community is $174,900. The population is about 20,053. Of the 6,966 total housing units, 6,448 are owner occupied. The township is 9.95 square miles.

For more, call 412-831-9000 or visit www. www.twpusc.org.

Borough council approved a 2008 budget of $893,480, with no tax change, keeping the borough's property tax rate at 6 mills. One mill equates roughly to $46,865. A majority of the budget is spent on the police force, street maintenance and repair, and sewage costs.

Borough Manager Linda Salzmann said that council will have to face the issue of raising real estate taxes in the next few years. Taxes have not been raised in three years, she said, and expenses, including health insurance costs for borough employees, continue to rise.

The median price of a home in the community is about $50,000. The population is about 1,724. The borough has a high percentage of renters. The borough is 0.49 square miles.

For more, call 412-751-3922.

Borough council approved a 2008 budget of $12.8 million, with a millage rate of 7.27, up from 6.27 in 2007. Borough officials cited general rising operating expenses as the reason for the tax increase.

All municipal tax dollars are put into the general fund. The largest expenses are personnel costs, including costs in the police, public works and solid waste collection departments.

The median price of a home in the community is $70,200. The population is about 22,464. Of the 9,509 total housing units, 7,477 are owner occupied. The borough is large, at 14.35 square miles.

For more, call 412-466-8170.

Council approved a 2008 budget of $587,869, with a millage rate of 9.43, up from 8.43 in 2007. Borough Secretary Jean Warren said that millage rates were raised primarily to cover the increased costs of garbage collection, which went up $23,000.

One mill equates to about $26,000 in the borough. All municipal tax dollars are put into the general fund.

The median price of a home in the community is $49,200. The population is about 1,338. Of the 560 total housing units, 429 are owner occupied. The borough is just 0.26 square miles.

Call 412-462-8940.

Borough council approved a 2008 general fund budget of $7.3 million, with no tax change, keeping the borough's property tax rate at 5.5 mills. A resident with a house valued at $100,000 pays $550 in municipal real estate taxes.

All municipal tax dollars are put into the general fund. About one third of the budget is spent on public safety. The next largest expense is public works.

Individuals working in Whitehall will get a tax break this year. The council was able to reduce its local services tax to $10 a year, down from $15 in previous years.

The median price of a home in the community is $102,900. The population is about 14,444. Of the 6,294 total housing units, 4,553 are owner occupied. The borough is 3.19 square miles.

Call 412-884-0505 or visit www.whitehallboro.org.

Statistics for this overview were obtained through borough officials and from municipal profiles found on the Allegheny County Web site. For more, including millage for school district taxes, which were not analyzed in this article, visit www.alleghenycounty.us/treasure.

Also, house values and population statistics were based on 2000 census data. This data may vary from current Allegheny County taxable residential median value figures. This information, for comparison, is also available through the county Web site.

Each community structures its budget differently. For more details on community budgets, a phone number and Web site, when available, has been provided.