Following a decade of no tax increases, the village budget for 2004-2005 calls for the second tax increase in the last three years.

According to the budget presented to the board of trustees last Thursday, the tax rate will rise by 17 cents to $12.00 per thousand dollars of assessed value.

The new budget increases general fund spending by approximately $400,000 over the previous year to a total of almost $2.5 million.

According to village treasurer Mary Ann Henderson, the increase is being driven by the planned reconstruction of Nelson Avenue and two other proposed street projects. The street projects will be paid for with funds from the village's street repair capital reserve fund.

Insurance is another expenses which as increased substantially over last year. Henderson said they are budgeting an extra 29 percent for the cost of employee health insurance and an additional 10 percent for the village's general insurance.

"We wanted to make sure we had a good handle on health insurance," Henderson said.

Last year the village budgeted $135,000 for employee health insurance, but is setting aside almost $175,00 for next year.

The budget also includes $110,000 for the purchase of a new ambulance for the emergency medical squad. The board of trustees approved going out to bid for a new ambulance earlier this year.

According to the budget, the village will apply only $13,250 of its more than $400,000 surplus unappropriated fund balance to the budget.

Deputy mayor Lee Malone, who is also the chairwoman of the finance committee, said this week that the 17 cent increase is "pretty good - all things considered."

Malone said the village has accomplished a great deal in the past year and still has many projects in the works.

"We have spent the entire year watching every nickel. Some thing's you can hold the line on and some thing's, unfortunately, you can't. We really worked hard on this one," she said.

The trustees have scheduled a public hearing on the new budget for Thursday, April 15.