The Gorham Town Council will hold its final public hearing and vote Tuesday on the 2011-2012 school and municipal budgets, which would increase taxes by 3.6 percent.

The 58-cent increase in the tax rate would add $116 to the property tax bill of the owner of a $200,000 home.

The $12 million municipal budget is up 4 percent over the current year’s $11.5 million.

The proposed school budget, approved by the School Committee last month, is $31.2 million, a 2.6 percent increase over this year’s $30.4 million.

The budget also includes about $800,000 in Cumberland County taxes.

Residents will vote on the school budget June 14.

The town budget includes a $240,000 payment on money borrowed last year for roadwork and a heavy rescue truck for the fire department. Town Manager David Cole also budgeted an additional $200,000 for roadwork.

Those new expenses would be offset by proposed cuts to health insurance and some town services.

A slightly downgraded health insurance plan for town employees would save $110,000.

A reduction in the town clerk’s office hours and adjustment to the hours worked by the office staff hours would save about $24,600. One proposed job cut — a part-time assistant librarian — would save another $10,600. 

The school budget eliminated one full-time teacher, who retired. Two education technicians and one part-time secretary were also cut in the proposed budget. The three positions represent a savings of about $200,000, said Finance Officer Hollis Cobb.

The school budget increase is largely due to the first principal payment of about $1 million on Great Falls Elementary School, which was approved by voters in 2008 and is scheduled to open in the fall, said Cobb.

The only other increase in expenditures is in salaries and benefits for staff, Cobb said.

She said Superintendent Ted Sharp asked administrators to cut their discretionary spending, such as classroom supplies and equipment, to absorb that increase.

Tuesday’s Town Council meeting starts at 7 p.m. in the council chambers at the Gorham Municipal Center.

Staff Writer Leslie Bridgers can be contacted at 791-6364 or at:

[email protected]