The first increase since 2012 is possible if the city and school budgets, reflecting a drop in revenues, are passed.

Westbrook residents could face their first property tax rate increase in four years, as municipal and school budgets, rolled out this week, show increases caused by significant revenue losses – including a $1.1 million revenue hit to the school department.

On Monday, City Administrator Jerre Bryant presented the mayor’s overall fiscal year 2015-16 budget to the City Council, outlining how the proposed $24.7 million municipal budget, and $34.4 million school budget, will affect the city’s tax rate.

If both budgets proceed as proposed, Westbrook’s property tax rate will rise by 94 cents, to $18.14 per $1,000 of valuation. The revenue woes on the school side account for most of the increase, at 81 cents, while the municipal budget represents 10 cents, and the county tax, 3 cents.

The last time the city’s tax rate increased was in 2012, when the rate jumped from $16.70 to $17.40. Since that time, the tax rate has remained flat, even lowering by 20 cents in two separate years.

While school expenses are only up $420,732, a possible revenue loss of $1,157,899 has the school’s tax needs increasing by 9.4 percent, or roughly $1.5 million.

Proposed city expenses are up $554,351, but with increased revenues of $236,306, the city’s tax needs are up 1.6 percent.

Bryant gave an example that an average home valued at $190,000 will see a property tax increase of $178 next year.

A major theme surrounding the start of the budget process has been Gov. Paul LePage’s proposed state budget, which, Bryant said, contains a number of components that will impact revenues coming to both municipalities and school districts.

“There is a tremendous amount of uncertainty contained in the revenue portion of this budget,” Bryant said. “This budget is based on the budget proposal sent to the Legislature by LePage.”

During past meetings, Bryant has said that state legislation affecting municipal revenue sharing, General Assistance and other factors, caused the revenue uncertainty. Municipal revenue sharing gives cities and towns a portion of the state sales tax. LePage has proposed to eliminate revenue sharing completely and raise the sales tax.

On the school side, the decrease in revenues was unfortunate timing, said Superintendent of Schools Marc Gousse on Tuesday.

Gousse said that one of the factors used in the revenue formula by the state is property valuation, meaning that as valuation increases, the state expects that local property taxpayers can pick up some slack. The department will receive $300,000 less from the state for next year.

On top of that, Gousse said, the department received $462,000 in one-time funding that went toward the fiscal year 2014-15 budget. It also received $150,000 less from Spring Harbor Hospital, which works with the school on a residential treatment program.

“If the revenue was neutral, we’d be looking at coming in with a 1.2 percent increase,” he said, referring to minimal increases in school spending. Gousse said he didn’t propose any new positions or programs for next year.

When the school department saw the revenue hit, Gousse cut $300,000 in capital costs from his proposed budget. As an example, Gousse said, books and supply budgets were only increased by 0.2 percent.

The school finance committee will meet again on Saturday, March 21, from 8 a.m.-3 p.m., in Room 114 of Westbrook High School.

The municipal budget review process will continue this Saturday, March 14, from 8 a.m.-noon, also in Room 114 of Westbrook High School.