Infobox: April 13, school board presents budget to the town council, 7:30 p.m., Town Hall.

April 26, public hearing on the budget

Cape Elizabeth’s proposed town budget would abide by the town’s 3.4 percent spending cap.

If the Town Council adopts the proposed budget, Cape property taxes will increase by 17 cents per $1,000 of property value, based on the municipal budget alone, according to Town Manager Mike McGovern.

“It’s a pretty routine budget,” said McGovern. “It’s a status quo budget, which is fine.”

The total proposed budget is $8.3 million for an increase of about $272,000 over last year’s budget. McGovern submitted his budget to the council at its regularly scheduled meeting March 13.

Employee wages, benefits and the projected cost of heating oil, propane gas, and motor fuel accounts for over three-quarters of the increase, said McGovern. Wage and benefit increases cost approximately $152,000, which is 56 percent of the overall increase and increased energy costs are about $55,000 for 20 percent of the total increase, according to budget documents.

McGovern said over the past five years spending has increased by $1.3 million for a total increase of 19 percent, averaging at a 3.8 percent annual increase. This five-year increase is equal to what the school system has requested this year alone, said McGovern.

On March 14, the school board approved an $18.8 million budget, a 7 percent increase over last year’s budget, double the council’s spending cap.

Superintendent Alan Hawkins initially proposed a budget of $18.2 million, with an increase of 3.4 percent. That budget met opposition from teachers, parents and students who said they felt restricted spending would cripple the school system and would ultimately hurt student learning. The community outcry prompted the revision to the school budget.

McGovern questioned why the school board needed a 7 percent increase. “What really are the cuts that affect kids. No one’s indicating what the cuts are,” said McGovern.

If the Town Council approves both the school and municipal budgets as proposed, taxes will increase 62 cents for every $1,000 of property value according to budget data. If the council stood by its 3.4 percent increase for both the school and town’s budgets, the total increase would be 18 cents per $1,000 of property value.

Ten percent of the remaining municipal budget increase went towards new debt service for the sewer and road rehabilitation project at approximately $27,000 and nearly 10 percent was spent on cable TV programming and part-time help to get the GIS mapping system running on the Cape Elizabeth Web site.

Capital improvements totaled 7.7 percent of the total municipal budget and include replacing a police cruiser, $80,000 in culvert work on Old Ocean House Road, $125,000 for paving roads, replacing a street sweeper for $140,000, replacing a truck for $35,000, computer upgrades for $25,000, sidewalk improvements for $20,000 and replacing a mower for $16,000.

McGovern anticipated revenue losses in several categories, including property sales, building permits and state funding. However, he said, the amount of excise tax collected by the town will increase because of short-term interest rates.