The stage is set for Coplay residents to see a tax increase.

At its meeting Tuesday night, the borough council approved the first reading of the proposed $1.4 million budget which calls for a 0.3-mill tax increase.

The increase amounts to approximately $42 more for the average homeowner, said Councilman Joseph Groller, who heads the borough's finance committee.

Increases in salaries, through union contracts and anticipated increases in health insurance and other insurance premiums are to blame, he said.

"We purchased a new truck for the street department for a five-year payoff," Groller said.

The new dump truck comes with a price tag of $67,000 with payments being $14,000 to $15,000 annually.

The borough also is facing the costs of replacing the heating system at the municipal building, though no decisions have been made.

Groller ran through the expenses projected for 2015, saying the anticipated deficit would be about $30,000.

"As a borough, we're required to have a balanced budget," Groller said.

Because real estate tax revenue doesn't start coming in until spring, the borough has to make sure it has cash on hand to pay bills during the winter.

For the general fund, anticipated revenues total $1,461,863. Expenses tally $1,435,347, leaving the borough with a balance of $25,516.

The main expenses include $136,710 for administration, $33,300 for tax collection, $82,020 for borough buildings, $285,550 for the streets department, $69,400 for recreation, $410,117 for police, $6,850 for health and $411,400 for miscellaneous which includes insurance, workers' compensation and payroll taxes.

The main revenue sources include $690,663 in real estate taxes and $305,000 in earned income taxes. Other revenues include $51,000 for TV cable permits, $44,500 for the cell tower lease, $37,000 in business privilege taxes $21,000 for pool receipts and $19,000 in real estate transfer taxes.

The budget will be on the agenda for the December meeting, set for 7 p.m. Dec. 9. A special meeting to vote on the budget has been scheduled for 6:30 p.m. Dec. 15.