North Yarmouth’s town manager pitched a municipal budget of $5.56 million, a slim 0.88% increase from the current fiscal year.

The total increase of $48,500 is driven by changes in wages, capital expenses and contracted services, Town Manager Diane Barnes said at a Select Board budget workshop on Saturday.

Wages and benefits make up $2.38 million of the proposed budget, or 43% of the town’s overall expenses. The proposed budget includes a 3% cost-of-living increase for town staff. A part-time code enforcement officer position was added, a service that was previously contracted.

“Our objective is to ensure that the budget reflects the town’s priorities, addresses community needs, and upholds sound financial stewardship,” she wrote.

North Yarmouth is expected to pay $50,500 more in solid waste and recycling removal from Casella and ecomaine in fiscal year 2027. The budget also proposed paying Cumberland $15,800 more for the contracted service of the shared Prince Memorial Library and $10,500 less for contracted recreation services.

Barnes expects income from municipal revenue sharing with the state to decrease by $105,000, but anticipates town revenues from fees, permitting and more to increase by $50,300.

Town staff estimate that the proposed budget will bring up property taxes by 16 cents for every $1,000 of assessed home value. This would be in addition to a projected county impact of 16 cents, and a Cumberland-North Yarmouth school budget impact of $1.70.

Barnes, who plans to retire in September, expressed her thanks to town department heads who helped develop the draft budget.

“Their efforts have ensured that this budget is both comprehensive and aligned with the Town’s shared vision for North Yarmouth,” wrote Barnes.

The budget committee will hold another workshop on May 2.