SACO — The City of Saco has proposed a municipal budget that would lower the mil rate and help cushion the impact on the mil rate from the school side. 

City Finance Director Glenys Salas presented on Monday night a $28.7 municipal budget proposal that includes $1.3 million in county tax. The number does not include the proposed school budget; the School Board is set to vote on a final school budget proposal on Wednesday. 

The proposed municipal budget would lower the mil rate by 9 cents and help offset the increase the school budget is expected to have on the mil rate.

Salas said city staff was directed to come up with a budget that would eliminate the strain on city services and maintain contractual increases yet leverage the mil rate to cover school growth. 

Salas said the city was able to take advantage of a 30 percent savings in fuel costs, no increase in utilities due to energy efficiency initiatives and a 50 percent reduction in printing costs.

Salas said the proposed municipal budget also uses about $290,000 in reserves. 

The city has proposed an overall budget comprised of a municipal budget, county tax and school budget that would increase the mil rate by 37 cents, according to a memo by City Administrator Kevin Sutherland. 

However, the School Board is considering a School Department budget that is higher than the school budget recommended by city staff, and the mil rate impact of the total combined budget will likely be greater than the projected 37 cents.

City Council will review both the municipal and school budgets and is scheduled to vote on both on May 14. The May 14 vote will be the final vote for the municipal budget. The school budget approved by the City Council on May 14 will go before residents for final approval at a city-wide vote on June 12.

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