OLD ORCHARD BEACH — The Old Orchard Beach Town Council has approved a $16.9 million 2018 fiscal year municipal budget.

The council unanimously approved the budget Tuesday.

Town Manager Larry Mead said the town budget combined with the $13.8 million school budget, will increase the mil rate by 47 cents to $15.93. The new mil rate will increase property taxes $96 a year on a $200,000 home. For those who live in Maine year-round and are eligible for the state Homestead Exemption, this increase would be reduced by $80 — from $96 to $16 a year.

Mead said the Town Council began the budget process in March with a goal of capping the property tax increase at 3 percent; the finished product adheres to that goal.

 A few areas where town officials found savings were in electricity costs and legal fees.

Mead said due to the changes in the contract with Constellation Energy, the town can expect a $50,000 reduction in electricity costs — $27,000 of that is lowering the cost to run the waste water treatment plant.

The town also reduced the legal fee budget by $25,000 due to litigation that was settled.

Tuesday night’s vote was the final approval for the municipal budget. Residents will vote on the school budget at town-wide referendum on June 13. Polls are located at Old Orchard Beach High School and are open from 8 a.m. to 8 p.m. June 13.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.