There was good news and bad news in Mt. Lebanon this week. The good: The recently proposed municipal budget doesn't indicate an increase in property tax millage rates, nor does it indicate increases in earned income tax rates or sewage fees.

The bad? With tax revenues flattening and personnel costs up 3.6 percent, five full-time jobs will be eliminated with the possibility of part-time hours reduced, too.

As he predicted to commissioners last month, municipal manager Stephen Feller said expenses will increase by about $1.3 million over last year.

"In spite of reducing a number of positions, the reason we're still going up in personnel costs is that employee health insurance is increasing significantly, $380,000," he said.

"Employee pension costs have gone up $129,000, so we have two big hits right there."

The eliminated jobs include two police records clerks, one recreation center assistant manager, one golf course maintenance worker and one public works laborer. The last, Mr. Feller said, will likely take retirement.

Mt. Lebanon currently has round-the-clock staff monitoring the nonemergency police phones and the alarm receiver. It is recommended the service be turned over to a private firm; emergency services are handled by the county.

Mt. Lebanon commissioners recently approved a study by California-based Matrix Consulting Group. The group is charged with finding effective ways to streamline the budget and will receive at least $64,000.

As an incentive, should Matrix save the municipality a certain percentage through its recommendations, it will receive bonuses. Its initial report is due Dec. 1.

Mr. Feller said its upfront fee is not yet part of the 2009 budget.

Mt. Lebanon's total operating budget is expected to be $45.79 million. Mr. Feller said he is proposing the municipality pursue a $7 million bond issue that would earmark $4 million for street reconstruction and improvement to recreational facilities, such as athletic fields, the golf course and swim center.

Facilities such as the golf course, ice rink, tennis center and swimming pool generate profit and "continue to have strong attendance and support from the residents," Mr. Feller said.

But Mt. Lebanon's contributions to events such as First Fridays, Farmer's Market, Teen Center and the West Penn tennis tournament will be eliminated under the new proposed budget.

"In none of these cases do these organizations get all of their funding from Mt. Lebanon," he said. "These are important, but I felt they could be cut without dramatically affecting the quality of life."

Deer culling, a controversial subject everywhere, would also be eliminated at a savings of $60,000.

Flower plantings at cul-de-sac entrances to neighborhoods, will be cut to save $23,040.

Not affected by the cuts are the library, Outreach Teen and Family Services and Medical Rescue Team South Authority (MRTSA).

A virtual freeze on county real estate tax assessments, plus the national downward trend in home buying curtailed revenue through deed transfer taxes.

"We haven't been immune to that situation but Mt. Lebanon is still a desirable place to live and home prices remain strong," Mr. Feller said.

The recommended budget is available online at www.mtlebanon.org, under "Finance."

Budget work sessions for the commission are scheduled for at 6 p.m. today, next Wednesday and Nov. 17 in the municipal building conference room. Public hearings are Monday and Dec. 15.

Mr. Feller said the commissioners hope to adopt the final budget at their Dec. 15 meeting.