Property taxes and sewage rates are on the rise for Fredonia residents in 2009.

Council members Monday approved the 2009 budget of $78,387 with a 1-mill real-estate tax hike and a $2-per-quarter hike on sewage bills.

The increases are needed to cover rising costs of employee benefits and salaries and utilities and operating the sewage treatment plant on Marstellar Road, council members said.

The spending plan is very tight but borough officials budgeted reasonably, said council member Shari Valimont.

Real estate taxes will go from 13 to 14 mills ’ an increase of about 7 percent. Council also approved the sewer account budget of $81,450, with the new rates taking effect in the second quarter of 2009.

Fredonia’s sewage treatment plant serves 276 customers in the borough, who will pay $82 a quarter, up from $80. The borough’s largest customer, Fredonia Coin Laundry, currently pays $300 a quarter and council approved a $7 rate hike for the business, bringing its quarterly bill to $307.

The water account budget of $56,050 was also approved.

A mill is $1 for every $1,000 of a home’s assessed value. Assessments are the 1970 market value. At 14 mills, a home assessed at $15,000 carries a tax bill of $210. One mill brings the borough $3,384.

Budget at a glance

Here is a breakdown of Fredonia’s proposed 2009 general fund budget of $78,387 with 2008 figures in parentheses:

SPENDING

’ General government, $8,850 ($9,135)

’ Municipal building, $1,200 ($1,200)

’ Tax collection, $4,200 ($4,600)