ZELIENOPLE — Borough residents may see a 1-mill real estate tax increase and a 3% rise in water and electric rates if a proposed $12.4 million budget is approved by the borough council in December.

Borough council approved the preliminary budget Monday, Nov. 25, moving it to a 10-day public comment period.

The increases will protect the borough from a projected $500,000 shortfall in electric funds in 2025, according to borough manager Andrew Spencer.

Spencer said significant increases in electric capacity costs are affecting the entire seven-state PJM region, a regional transmission organization.

The proposed 1-mill real estate tax increase will be directed to the borough’s parks, costing the individual property owner between $8 and $16 monthly, he said.

The council approved a proposal by Cincinnati-based Omni Fiber to install high-speed fiber internet service in the borough, providing residents an alternative to the Armstrong service now available.

The “fiber-to-the-home” service could be available as soon as January, according to Mike Stoltz, a Dayton-based construction manager for Omni Fiber. The plan will include the installation of cables on utility poles as well as underground cables, Stoltz said.

The council will hold a Jan. 13 public hearing to discuss a plan to protect Zelienople’s historic district.

If approved, the Historic District Overlay will provide guidelines for renovation of buildings with a goal of preserving the historical character of the borough, Council President Mary Hess said.