OLD ORCHARD BEACH — The Old Orchard Beach Town Council voted unanimously on Tuesday to approve a nearly $16.4 million municipal operating budget and a nearly $1.7 million capital improvement budget.

The municipal budget includes a $600,000 draw from the town’s undesignated fund to help offset a tax increase.

Town Manager Larry Mead said when factoring a valuation growth of about 1 percent, the 2019 fiscal year municipal budget would mean a mil rate increase of 47 cents, an increase of just under 3 percent over this year’s mil rate. This would equate to less than a $100 annual property tax increase on a $200,000 home.

However, Mead said the 1 percent valuation growth estimate was a “worse case scenario” and he believes it will be more than 1 percent. If the valuation growth is more than estimated, this could mean a slight decrease in the estimated mil rate.

Tuesday night’s vote was the final one for the municipal budget. The proposed $14.1 million school budget, which will not impact the mil rate, still needs a final vote at the polls on June 12 before it is approved.

Residents can vote on the school budget from 8 a.m. to 8 p.m. at the Old Orchard Beach High School gym on June 12.

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