North Fayette supervisors are considering a $9.4 million budget for next year that would raise the property tax rate from 3.2 mills to 3.7 mills.

The tax increase, the first since 2008, would cost the owner of a $100,000 home an additional $50 a year. The average home value in the township is about $125,000.

Manager Bob Grimm said the budget includes pay raises to recognize jobs well done and to compensate for some work-related expenses employees must incur individually.

Mr. Grimm said the increase would generate about $500,000 to cover the higher costs of road salt, medical insurance, pension contributions and debt payments.

"The decision to increase the millage was not taken lightly," Mr. Grimm said. "It was a last-ditch effort to balance the budget. All the cuts were made that could be."

The proposed spending plan maintains current staffing and services to residents, but it calls for a hiring freeze and limits purchases.

The budget proposes 50-cent raises for hourly, nonunion employees, whose wages range from $12 to $19 per hour.

The manager and department heads would receive 2 percent increases. Their current salaries range from about $49,000 to $77,000 a year. Under a tentative police contract, full-time officers get 3 percent raises.

No pay raises have been established for members of the Construction, General Laborers & Material Handlers Local Union 1058, pending contract negotiations. Recently organized members include the public works and sanitation employees, a full-time park laborer and a part-time custodian.

Overall medical insurance costs are expected to rise 15 percent, or about $100,000, next year. Mr. Grimm said the township is considering health plans with higher deductibles and co-pays for nonunion employees to save money in the future.

With revenues expected to increase only $20,000 next year, the township cannot afford to fill a full-time public works position or add new jobs, including a proposed assistant manager/finance director, another full-time police officer and an in-house engineer to replace the outside consulting firm, he said.

Instead, Mr. Grimm said, a sergeant will be promoted to lieutenant, and other staffing changes will be kept in mind for the future.

"Long term, hiring [an engineer] in house can actually save the township money and probably enhance our day-to -day service," Mr. Grimm said. "If the economy picks up and development starts again, it would be more cost effective. ... We're just going to keep ourselves positioned so if the growth starts again, we can be ready."

Budget adoption is scheduled for Dec. 22.

Looking for more from the Post-Gazette? Join PG+, our members-only web site. You'll get exclusive sports content, opinion, financial information, discounts from retailers and restaurants, and more. Our introduction to PG+ gives you all the details.