The annual Town Meeting was held at the Windham High School auditorium to allow for social distancing measures. Emily Bader / Lakes Region Weekly

WINDHAM — Residents approved a municipal budget of $24,753,879 for the upcoming fiscal year at Saturday’s annual Town Meeting. About 50 residents, not including the town manager and councilors, were in attendance at the Windham High School auditorium, where seating was spaced out for social distancing.

The budget represents a 3.5% increase over last year’s budget of $23.9 million.

Voters also approved to appropriate $250,000 from the general fund reserves to account for the expected shortfalls in auto excise tax revenues, as well as an article that allows the council to transfer “unencumbered appropriation balance or portion thereof” between departments as needed for lost revenues due to COVID-19.

Town Manager Barry Tibbetts said that the municipal tax rate will remain the same as the current fiscal year, but the the county tax rate will increase by 4 cents. The new municipal tax rate, not including taxes for RSU 14, will be $4.49 per $1,000 of assessed property value. The owner of a $250,000 home will owe $1,122.50, $10 more than last year.

The warrant articles at Town Meeting did not include the budget for the Windham-Raymond school district.

Residents also voting to approve to dispose of the former South Windham Fire Station on Main Street and authorized an estimated $5.96 million in capital improvement projects, which includes interest on bonds, for the expansion and repair of the public safety building on Gray Rd., repairs on Route 35 and Brand Road the installation of traffic lights, and the purchase of a new ambulance.