By a narrow margin the Scarborough Town Council preliminarily approved several changes to the town charter that would shift some budget and bond approvals to residents while allowing the council to borrow more without voter approval.

Councilors Sylvia Most, Patrick O’Reilly and Carol Rancourt opposed the ideas, which passed 4-3. But they gathered enough support to be sent to a second reading and public hearing on Sept. 21. If they pass then, the measures will be sent to all town voters Nov. 8.

Councilor Shawn Babine proposed all three of the amendments. One would force a referendum on budgets that increase the tax levy by more than 3.5 percent.

Additionally, Babine is requesting that any bonding package that would bring a single year’s borrowing over a cap of 0.25 percent of the town’s assessed value be sent to a referendum vote. Based on the town’s new valuation of $3 billion, the cap would be about $7.5 million.

Finally, he is asking that any individual project above $1.25 million be sent to the voters, even if it is within the $7.5 million cap. The present single-project cap is $400,000.

Council Chairman Jeff Messer said he is favor of increasing the single-project limit from $400,000 to better adjust to what items cost today, but said $800,000 (the number initially proposed by Babine) may be a bit much. He also said that the limit of a 3.5 percent increase in tax levy would be better off at 3 percent.

Still the town rarely reaches the level. Since Messer was elected in 1996 the average tax rate increase has been 2.8 percent.

However, the town is adding about $60 million per year in valuation and, when combined with fees and excise taxes, the budget could increase by about $2 million per year before reaching the cap, Messer said.

Most opposes the proposals, saying any charter amendments dealing with complicated issues should be reviewed by a Charter Review Committee.

Babine countered that several charter amendments have been proposed and approved outside of a review committee, including one last year that changed the town’s audit completion date to December.

Babine also said the proposal is not a tax cap since the tax rate can increase by more than 3.5 percent, but must first be approved by residents.

Babine said he is concerned about the town’s ability to spend unlimited money on road and utility improvements. He said the town has a $120 million improvement plan that includes $60 million worth of bike paths. He feels that when approving such large sums of money, the council should seek voter approval.

“It might be a populist approach to government, but I believe that it is right when you are spending that kind of money,” Babine said.

Town Manager Ron Owens opposed the amendments in a memo to the council.

He said the council and town administration have done an “excellent” job and there has been no public outcry over their stewardship. Owens said the proposals remove accountability from the system because no one is held accountable in a referendum vote.

“To me it represents a step backward to a town meeting and weakens the council in managing and controlling town finances and allotting scarce monetary resources,” he wrote. “It begins to set the stage for making the budget a popularity contest, whereas, presently the Council is elected and charged with making financial decisions based on merit and council members’ specific understanding of the town’s finances.”