FALMOUTH — The Town Council approved a combined $40 million municipal and school budget Monday night for the fiscal year that starts July 1.

The $11 million municipal budget calls for a spending increase of 3 percent — nearly $319,000 — but it would add nothing to the tax rate of $12.92 per $1,000 property value, town officials said.

The $29 million school budget proposal is $2.8 million — 10.8 percent — more than the $26.2 million spending plan for the current school year, school officials said.

The budget vote was unanimous, said council Chairwoman Teresa Pierce.

The town will hold a hold a referendum on the school budget June 12.

Nearly half of the school spending increase — $1.4 million — anticipates the first full-year debt payment for Falmouth Elementary School, which opened in September. The Maine Department of Education is covering 85 percent of the cost of the new school with an increase in state education aid.

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The school district’s operating costs account for the remaining 5.7 percent increase in 2012-13, largely because of salary increases and decreases in federal and state revenue.

The school budget would add 50 cents to the property tax rate. The annual tax bill on a $300,000 home would increase $150, from $3,876 to $4,026.

Also Monday, the council tabled action on a new Water View Overlay District, encompassing the Foreside and Flats neighborhoods overlooking Casco Bay. It was the first step in defining waterfront zoning. No further changes in zoning related to water views are proposed.

The council’s Community Development Committee will review the district before it goes back to the Town Council for consideration May 14.

The council also scheduled a public hearing for May 14 to consider a proposal to expand the OceanView at Falmouth retirement community’s overlay district.

The expansion would allow OceanView to proceed with its council-approved, $25 million plan to redevelop the former Lunt and Plummer-Motz elementary school complex on Lunt Road.

 


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