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With one member absent, the City Council on Wednesday voted 11-0 to approve a $19.8 million budget for next year which will increase taxes by $2.08 per $1,000 of assessed valuation.

The increase could have run as high as $3.09 per $1,000, but only interest will be paid next year on $2.5 million the city will borrow to pay off the remaining debt from the defunct Jamestown General Hospital. Payments on the principal will start in 1992.

The tax increase in the operating budget comes to $1.58 per $1,000. The borrowing adds 50 cents.

The spending package submitted by Mayor Donald W. Ahlstrom would have raised taxes by $1.59 per $1,000, with no provision for paying the hospital shortfall.

Ahlstrom also wanted to close the Fairmount Avenue fire station, eliminate a school crossing guard program and give Jamestown Community College the same amount it received in 1990.

The Council, by making cuts and juggling accounts, provided for keeping the fire station operating at least one more year. The crossing guard program will continue and the community college will receive an additional $25,000 as its share of the additional cost of salary increases.

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