WESTBROOK – City Councilors put their final stamp of approval on the budget this week, at a special meeting held Monday night.

The council held its second reading on two orders, one for approving the 2011-2012 city “annual budget and appropriations,” and the other for approving 2011-2012 school budget warrants. Both measures passed unanimously.

On both the municipal and the school sides, massive revenue shortfalls, mostly coming from the state and federal level, led to huge budget gaps, despite decreases in actual spending by the city.

The municipal expense budget is now finalized at $24,292,628, an increase of $19,675 over the 2010-2011 budget. To make up for revenue losses, the city will have to raise a total of $477,106 more from taxpayers next year. That translates into a 26-cent increase in the tax rate for 2012, or a $49.01 annual increase on a $190,000 home, according to Chief Financial Officer Dawn Ouellette.

The council’s vote also approves the school budget, which now goes to a public referendum on June 7. If approved by voters, the 2011-2012 budget will be $30,855,304, which is about $2.4 million smaller than the current 2010-2011 budget. If approved by voters, 42 positions will be lost throughout the district, including teachers, staff, and administration personnel.

Despite the cuts, the district will still have to raise an additional $810,891 in taxes to balance the books. If approved, the tax rate would go up 44 cents, which means an additional $83.29 annual increase on a $190,000 home.

In total, expenditures for both sides add up to $55.1 million, a decrease of 4.17 percent compared to this year’s budget.

The move puts an end to a long and challenging budget season, which some councilors addressed prior to the vote.

“It’s been an incredibly difficult budget,” said Council President Brendan Rielly.

The budget process was particularly difficult for the school side this year, where the district had to make up for a $3.7 million shortfall. The district held marathon discussions, sometimes lasting into the night, including public hearings with tearful pleas from staff, parents and students for the district to protect jobs and programs.

Interim School Superintendent Marc Gousse said he will be holding a question-and-answer session on Monday, May 16, at 6 p.m. at the high school auditorium, to explain to the public just what will be cut from the budget, if approved.