PORT ALLEGANY — At Monday’s meeting, Port Allegany Borough Council brought forth a preliminary budget with a tax increase.

However, council members were hesitant to approve an increase, and decided to wait until finances could be further reviewed before passing the budget.

Council also took action on health insurance and speed limit signs.

Borough Manager Bob Veilleux brought up the renewal for the health insurance plan. The plan was approved by the borough and would increase by 8.1 percent to maintain the current plan.

Also brought to the attention of the borough were the school zone speed limit signs. The current signs, which are flashing, are estimated to cost $3,554.20 to repair. However, a static non-flashing sign would only cost $416.34. Approving the non-flashing lights, the borough will wait for the school district’s support before amending the agreement with Pennsylvania Department of Transportation concerning the school signs.

The borough also approved the solicitor to look into an electricity purchase agreement that would offer a rate of $.04/KWH. This rate, however, would become void if a certain number of kilowatts were not used in a year.

In attendance were the Cub Scouts who were trying to get a feel for their local government. In discussion.

Council will meet again at 7:30 p.m. Dec. 4.