OLD ORCHARD BEACH — The town manager has proposed a town budget for the upcoming year that, when combined with the proposed school budget, would increase property taxes less than 3 percent.

Town Manager Larry Mead said at a special town meeting Wednesday night the council had requested a tax proposal that would limit a tax increase to 3 percent.

Mead proposed a $14,153,000 municipal operating budget ”“ a $464,000, or 3.4 percent, increase from the current year’s budget.

Mead’s proposed municipal budget, when combined with the school budget, would mean a 41-cent mil rate increase, or a 2.8 percent increase.

Under the current proposal, the town budget and county taxes would increase the mil rate by 26 cents, and the school budget would increase the mil rate by 15 cents.

The total proposed mil rate increase of 41 cents would increase taxes on a $200,000 home by $82 annually.

The proposed increases in the town budget include wages and benefits to staff, a second ambulance year-round, as well as a 2 percent cost of living adjustment for non-union employees.

Mead said staffing a second ambulance can make “a crucial difference” when responding to calls and the extra staff will allow the fire department to establish a fire inspection routine.

Mead said overall, the town’s non-union employees are making less than comparable positions in other communities.

Under the proposal, increased rescue billings of $125,000 from a second full-time ambulance would offset spending, as would a $50,000 draw from the town’s fund balance.

The town council will discuss the budget in a series of workshops before approving a municipal budget.

The school department will vote on a budget proposal later this month, which will have to be voted in by residents at a town meeting and then at the polls to get final approval.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or [email protected].