OLD ORCHARD BEACH — A nearly $14.9 million municipal budget has been approved.

The budget, approved unanimously by the town council Tuesday night, includes a nearly $13.7 million operating budget and a $1.2 million capital improvement budget. The $14.9 million budget is about a $600,000 increase from last year’s municipal budget.

Money to offset expenditures includes a $500,000 draw from the town’s undesignated fund, $500,000 in rescue fees, and $384,000 from a water and sewer bond approved by residents in 2008.

The budget maintains the same capital improvement budget as approved last year, said council Chairman Shawn O’Neil.

O’Neil said the council reviewed the budget line by line, and though it was an “arduous task,” it was worthwhile. He thanked the town finance committee, as well as town staff, for their work.

The municipal budget does not include the school budget. A proposed school budget was voted down by residents earlier this month, and a new school budget proposal must go before residents for approval.

The newly approved municipal budget, combined with an estimated school budget, will raise the mil rate an estimated $1.25, from $13.80 to $15.05, according to town Finance Director Diana Asanza.

Residents will weigh in on a new school budget proposal at a public budget meeting on Monday, June 30 at 6 p.m. at the Old Orchard Beach High School cafeteria.

If the school budget is approved at the June 30 meeting, it will go to a town-wide referendum for final approval on July 15. Voting would be held at the Old Orchard Beach High School gymnasium July 15, and polls would be open from 8 a.m. to 8 p.m.

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