PORT ALLEGANY — Richard Kallenborn will continue to perform borough management functions for Port Allegany for 90 days past his Dec. 31, 2014 retirement date, he and the borough council agreed at a special meeting Thursday night.

The borough council failed, by a 4 to 3 vote, to approve hiring of the preferred candidate identified after the past months of advertising, discussing and interviewing. Thereafter council members agreed to re-advertise the position. Kallenborn’s successor could be chosen in late February or in March.

About two years ago Kallenborn had announced his imminent retirement, but after the position had been advertised he changed his plans, when an organized protest by public works employees and several local residents urged him to continue as borough manager.

Action on hiring a new manager had been added to the agenda of the special meeting, originally scheduled for the purpose of adopting the 2015 budget and levying taxes.

The $2,025,735 budget was adopted without change from the proposed budget set weeks ago. There is no tax increase. Sewer and water rates also remain at current levels.

Total real estate tax millage was set at 6.43, or $6.43 per $1,000 of assessed valuation.

Dedicated millage will be .39 mill for street lighting, 1 mill for fire protection, .365 for the Samuel W. Smith Public Library, and 4.675 mills for general purposes.

The components of the spending program are listed as $596,580 for the general fund, $25,650 for street lighting, $110,054 for fire protection (provided by the Port Allegany Fire Department, aka Star Hose Company No.1), $97,784 for the library, $630,579 for the water department, and $498,500 for the sewer system, with $66,488 of state aid utilized.

An agreement with Kelmar Services LLC was approved. It adds flexibility to the building inspection program, with Mark Grassi to continue to do some inspections along with the Kelmar firm.