CAPE ELIZABETH — Town Manager Michael McGovern plans to present the Town Council with a fiscal year 2012 municipal budget that will increase the municipal tax rate by 1.5 percent.

At a Town Council meeting on Monday, Jan. 10, Councilor Sara Lennon, the chairwoman of the Finance Committee, said the increase would be the first in the past two years.

She said the proposed hike would increase municipal taxes by $6 per $100,000 of assessed value.

Lennon, reading from a prepared statement during a council meeting on Monday, said the total projected expenditure for 2012 is $8.88 million, an increase of about $341,000 over the current fiscal year. She said the additional spending will allow an approximate 2 percent increase in payroll, building repairs and equipment replacement.

In addition, the Fort Williams maintenance budget will increase by $80,000, bringing it to $100,000 for maintenance and upkeep.

“With any luck, the private fundraising might match that or come close, and we can begin to invest in some of the capital projects and expenditures that were discussed at some length last fall,” she said.

Although investment income and other revenues continue to decline, Lennon said halfway through the fiscal year the town is in “excellent financial shape.”

“For the first time ever, more than half the taxes have been paid at the six-month mark in the fiscal year,” she said. “It stands at 50.3 percent as of January 1.”

The council is expected to review the projected municipal budget in early spring.

Amy Anderson can be reached at 781-3661 ext. 110 or aanderson@theforecaster.net