Santa and his elves, along with Borough Manager Gene Zarayko and council, were present at Thursday's Northampton Borough council meeting.

The expected hike in real estate taxes for 2013 was taken off the table. Residents instead received an early Christmas present – the 8.1-mill tax rate will not be raised for the fourth consecutive year.

The Grinch was nowhere to be found in council chambers when Zarayko took the wraps off the proposed 2013 budget. The previously proposed $5,758,666 budget for next year was originally to be supported by a 1-mill boost in taxes. Property owners with an average $50,000 property assessment would have had to pay an additional $50 in taxes.

"I found a way, no tax hike will be necessary," Zarayko said.

Last month, Zarayko spent several days at Lehigh Valley Hospital-Muhlenberg, Bethlehem, due to an illness. Referring to his hospital stay as "Hotel Muhlenberg," he said, while he was there he spent time looking out the windows of his room, thinking about the budget and making revisions to it.

The revised figures Zarayko came up with include a $5,722,239 spending plan.

"We did not fall off the cliff," Zarayko said, a reference to the plight of the federal government.

Specific data was not released because the data has to become part of the budget, which is slated for adoption Dec. 20.

Zarayko said there will be modest raises for employees, "not outrageous," adding trash collection fees and sewer fees will see no increase. Sewer rates were hiked earlier.

There will, however, be an increase in many instances where permits are required.

"A nice Christmas present for the borough," Councilman Robert McHale said, adding "You did a great job," to Zarayko.

"You're Santa this year," McHale said as other council members noted Santa's bag was filled with good cheer for residents in town.

Council President John Yurish commended Zarayko for the hard work put in so a tax hike could be averted.