CAPE ELIZABETH — The Town Council’s Finance Committee begins its consideration of a proposed $8.9 million municipal budget Wednesday.

Spending in the budget of Town Manager Michael McGovern would be up $356,938, or 4.1 percent, from the current budget. Taxes for municipal services would increase 1.2 percent. The property tax rate for municipal services would increase five cents to $4.06 per $1,000 of assessed valuation.

“I think we appear to be in a fortunate position,” said Town Council Chairman David Sherman. “We’re not facing any huge cuts in services or positions. We’re also not facing a huge tax increase.”

The proposal includes increased spending on maintenance of Fort Williams Park and other town property, funding for capital needs and a 2 percent cost-of-living adjustment for employees. The proposal also includes the elimination of a part-time position in the tax office and the addition of a seasonal parks and trails laborer.

McGovern presented his budget proposal to the Town Council on Monday. The Town Council referred it to the Finance Committee, which comprises all of the town councilors. The committee will begin its review Wednesday at 7:30 p.m. at Town Hall.