Montoursville Borough Council approved a $1.72 million budget for 2013 that holds the line on real estate taxes.
The spending plan, which passed 4-2, is nearly $200,000 less than this year's budget and keeps the millage rate at 2.3.
Voting for the plan were Robert Brobson, Kim DiRocco, Eugene Boyles and Ronald Shearer.
Voting against were Dennis Holt and Mark Tillson.
Holt said he could not support a budget that sets aside $211,00 for recreation, spends too much on employee costs and pays 100 percent of workers' health insurance costs.
Holt said the budget was a reflection of "shifting money around" and a "shell game."
Brobson said the budget actually is lower than last year.
"Do you need all the people we have?" asked Mayor John Dorin.
"We think we do," Brobson responded.
Dorin and Brobson later argued over the use of money from the water budget to help balance the budget.
Under next year's budget, $203,437 is being shifted from the water budget to the general fund.
The mayor also questioned the need for spending $80,000 from the water budget for security of the borough's wells.
Boyles noted that the water budget is not only showing a balance, but a surplus as well.
In other matters, council voted to approve a five-year contract for Police Chief Jeff Guyrina.
Holt said increasing the chief's pay from $55,898 to $61,027 was excessive.
He said the agreement should be for three years instead of five years and not include 100 percent health coverage.
Boyles noted the salary does include a more than $5,000 pay hike in the first year and incremental increases over the remaining years of the contract.
He said Guyrina still will earn less than his predecessor.
Voting for the contract were Brobson, DiRocco, Boyles and Shearer.
Voting against were Holt and Tillson.
In a related matter, council approved the hiring of Matt Keller as a part-time police officer.
Council voted to increase the fees paid by softball teams to use Indian Park.
The Men's and Coed Softball League teams now will pay $150 apiece. Church League teams now will each pay $100.
In other action, council:
* Discussed the possibility of distributing to local businesses a newsletter highlighting municipal happenings.
* Agreed to purchase three laptop computers for the police department at a cost not to exceed $1,000.
* Appointed Bob Brown as an alternate to the Civil Service Commission.