CAPE ELIZABETH – The $33.23 million budget approved Monday by the Cape Elizabeth Town Council will mean a 3.5 percent tax increase for town residents.

According to Town Manager Michael McGovern, a 0.2 percent increase in townwide valuation, to $1.65 billion, means the property tax rate for next year will go up 56 cents, to $16.40 per $1,000 of valuation. That means the median single-family home in Cape Elizabeth, assessed at $314,000, can expect a property tax hike of $175.84, for a total bill of $5,149.60.

The $16.40 tax rate breaks down to $11.96 for the school department, up 4 percent; $3.43 for municipal services, up 1.8 percent; 65 cents for the county tax bill, up 6.6 percent; and 27 cents for the community services program, unchanged from this year.

The municipal tax rate this year incorporates a “Pennies for Open Space” program suggested by the town’s Future Open Space Preservation Committee, under which 1 cent was added to the tax rate, raising $16,457, to be set aside for future public land acquisitions.

The $9.08 million municipal budget includes a 2 percent “cost of living” raise for most town employees as well as $80,000 to help pay for full-time personnel on the rescue department. The capital improvements budget for the year also got a $100,000 boost to $800,000. The three largest capital projects for the coming year include road paving and drainage improvements at $295,000, a new loader/backhoe purchase at $110,000, and an upgrade to the town hall electrical systems, also $110,000.

Other significant outlays include a new police cruiser, $35,000; 10 new windows in town hall, $33,000; sidewalk improvements, $30,000; a new coating on the high school running track, $25,000; and a new extrication tool for the fire and rescue departments, $25,000.

The $22.53 million school budget, up 3.5 percent, does eliminate 5.3 positions, including four actual layoffs. Included in the cuts are a Grade 6 teacher (no actual position loss due to a retirement), a half-time world language position and a half-time Ed. Tech. III job in special education. All the cuts are based on enrollment, down 11 percent since 2003 and projected to drop another 12 percent by 2020.

Other staffing changes include replacing the technology integrator and computer lab positions at Pond Cove Elementary with a technology teacher. Meanwhile, at the middle school, two librarians and two technology integrators would be culled to three people with the job title of “media and instructional technology specialist.”

In addition to the creation of all-day classes for about one-third of kindergarten students, another change at the Pond Cove school will be the addition of an assistant principal, replacing a “teacher leader” job, to supervise and evaluate staff. On the district level, the literacy coordinator will become the director of instruction, charged with overseeing curriculum and assessment, professional development and teacher certification K-12.

Other position cuts include administrative support jobs at the high school and in nursing services, as well as a part-timer certification coordinator position in the central office.

However, amid the cuts there is one addition, as the district will create an eight-hour per week job to help augment the robotics program.

Although the community services budget change will not effect the tax rate, it is up $10,000 to $447,000 based on equipment needs at the fitness center. That increase was widely supported by residents who attended the April 29 public hearing on the budget.