The municipal side of Gorham’s proposed budget is up 3.7 percent from last year, which would raise the tax rate by 24 cents for each $1,000 of valuation.

The tax increase on a home valued at $200,000 would be $48.

Gorham Town Manager David Cole handed his proposed budget to the town council last week. The council is expected to vote on Cole’s budget next month.

Cole’s budget for the fiscal year beginning July 1 is $11.3 million, up $409,000 from $10.9 million. The municipal budget does not include money for Gorham schools or the tax Gorham pays the county.

In the town budget, three items – municipal center operational costs, fire department and capital projects – stand out with increases.

The cost of operating the new, larger municipal center, at 75 South St., is anticipated to be $222,150, up from $175,780, representing a $46,370 hike, or 26.4 percent. Town offices and school department central offices moved into the rehabbed Shaw School in December.

The former municipal center on Main Street is now fully utilized by police, fire and rescue. Cole’s budget calls for a decrease in costs of operating that building. It would drop from $117,615 to $111,850, a decrease of $5,765 or a 4.9 percent drop.

The fire department’s proposed budget is $782,994, up from $691,472 last year, or a 13.2 percent rise. In March, the town council approved hiring two additional combined firefighters and emergency medical technicians, “primarily reflecting the increased costs,” Cole wrote in his budget cover letter. The two firefighters began work this week.

Cole is asking an increase in the capital budget for local road improvements from $286,400 to $344,400, up $58,000. But the increase doesn’t mean Gorham will be fixing more roads. Cole said the price of paving went up last year and the extra money allocated in the budget would only allow Gorham to maintain its existing level of road repair. He also supplemented the amount for road repair with an additional $153,437.

Gorham has a list of 19 roads requiring improvements but the budgeted money would only be likely to cover six projects on four of those roads. No decision has been made as to which roads would be fixed.

Cole said pavement prices have jumped up from $32 per ton in recent years to more than $50 per ton now. “This additional money won’t buy more road work,” Cole said.

Cole said his proposed municipal budget is $58,616 under the state’s imposed tax cap. If the council chose to spend the extra amount, Cole said the tax rate would increase an additional 6 cents per thousand of valuation.

In supplemental requests, several town departments have wish lists. Public works wants to buy a vacuum truck with Windham in a five-year lease purchase deal. The truck would be used to suck up debris from manholes. Gorham’s first-year costs would be $50,000.

The fire department wants $800,000 for a new fire station, replacing existing ones at White Rock and North Gorham. Gorham police would like $81,749 for a new police officer to assign to the Drug Enforcement Agency. And the recreation department wants $190,000 to pave and add drainage to transform an ice skating rink to four-season use.

The town of Gorham gets a tax bill to pay, too. Cumberland County is assessing Gorham $27,177 more than last year’s $693,583, a 3.9 percent increase. The increase is projected to raise the Gorham tax rate by only 1 penny to 76 cents per thousand in support of the county.

The Gorham School Committee was to consider approving Superintendent Ted Sharp’s budget Wednesday night, after American Journal deadline. Sharp is asking for $29.5 million for Gorham schools, up $1.8 million from $27.6 million, or a 6.6 percent jump.

Last year, the state sent Gorham $14.1 million in subsidy plus another $1.3 to cover debt service. But, the school department heard Monday a preliminary indicator that Gorham would likely only receive a slight increase in state subsidy this year.

Jim Hager, chairman of the school committee, told the town council last week that the state gave the town two subsidy figures. Hager said one figure, based on the Gov. John Baldacci’s revised budget, would be $319,932 above last year’s subsidy to Gorham. The other figure, based on Legislature’s possible revision of shares, could be only $171,828 more than last year for Gorham schools.

The school committee will vote on the proposed budget using the lesser figure based on the latest information. “They are recommending we go with the lower number, which doesn’t spell good things for Gorham,” Paul Kelly, business manager for Gorham School Department, said Tuesday.

The Gorham tax rate was $20 per thousand of valuation in 2004-2005; $19.50, 2005-2006; and $19.40, 2006-2007. Cole said the reduction in the past had reflected additional support received from the state for education.

The town council and the school committee will meet in a joint workshop to discuss the budgets at 7 p.m. on Tuesday, April 24, in the municipal center. No dates have been set yet for a budget timetable beyond that workshop, said Cole.