PLEASANT PRAIRIE — The village’s tax levy will rise 3.9 percent under the 2010 budget approved by the Village Board Monday.

To support the $8.8 million tax levy, the board approved a tax rate of $3.40 per $1,000 of assessed value, up 2 cents from this year.

Under the levy, the owner of a $242,600 home — the average value of a village home — will pay $824.84 to support the village.

The budget includes general government expenditures of $16.1 million, including $11,3 million in operating expenses. That is a 1 percent decrease in the operating budget from this year.

Although the village trimmed operating expenses for next year by $160,000, administration projects a decrease of about $400,000 in revenue from non-property tax sources, such as permits and other fees related to new construction, necessitating an increase in the tax levy.

Village Administrator Michael Pollocoff expects 2010 to bring more of the same, even though some economic indicators are beginning to show glimmers of a turnaround.

“We really need to look at 2010 as a repeat of 2009. It doesn’t make sense to have a reduction in taxes when we have more people to serve,” Pollocoff said, citing as examples the new Target and J.C. Penney stores this year.

From 2002 to 2007, the tax rate decreased from $4.46 to $3.10 due mostly to growth in the community. To hold the tax rate to a 2-cent increase for 2010, employee salaries were frozen, with changes in the sick leave policy trimming an additional $62,000, according to Pollocoff.

Village 2010 expenditures include just over $1 million in borrowing to replace a pumper/tanker truck for the fire department at a cost of $742,000, as well as the purchase of a truck for fighting grass fires and the box needed for a new paramedic rescue wagon. The village purchased the chassis for the rescue truck this year.

Finance Director Kathy Goessl recommended that as debt is retired the village continue to set the annual levy at the maximum state-allowed municipal limit for the foreseeable future, saying when debt service payments decline, it would not make sense, given the state of the economy, to use the revenue to decrease the levy. Instead, Goessl advised using that money to buy capital equipment and to pay for road resurfacing.

Goessl also counseled using impact fees to put less burden on taxpayers, borrowing only for major villagewide capital purchases.

Pollocoff noted that 2009 brought unexpected expenditures due to record snowfall, flooding, cuts in state aid and a precipitous drop in development. “We had some tough times ... but I think we’re going to be OK,” he said.

Trustee Mike Serpe said the budget he and fellow board members approved “was a responsible budget.”

“It tears your heart out when you have to lay people off, especially at one of the worst times in economic history,” Serpe said.