The Cumberland Town Council Monday approved a $32.25 million town budget for the fiscal year beginning in July.

The budget sets aside $11.46 million for municipal expenditures and $20.79 million for schools. The municipal portion of the new budget is up $855,756 over the current fiscal year’s budget.

Town Manager Bill Shane said there will be a 1.47% increase in the property tax rate, boosting the rate 30 cents to $20.65 per $1,000 of assessed value. The owner of a $400,000 home in Cumberland will likely pay $8,260 in taxes under the budget, $120 more than the $8,140 due this year.

“We feel confident it will be no higher than that,” Shane said.

The share of the budget to come from property taxes is $30,144,512.

Shane said the biggest offset to the new fiscal year’s increases has been state revenue sharing, “which has improved dramatically.” He added the budget will generate about $700,00 in new revenue.

“I’m pretty confident that the budget we’re presenting you with tonight is a responsible budget that meets the needs of the community,” he said.