BATH — Following a series of budget workshops in early April and a final session on May 7, the Bath City Council will hold a May 23 public hearing on a proposed 2012-13 municipal budget of approximately $7.1 million.

The draft municipal budget would increase spending just less than 2 percent, City Manager Bill Giroux said Thursday.

Added to Bath’s share of the Sagadahoc County budget, which increased 0.52 percent, and the Regional School Unit 1 costs — now set to rise 2.8 percent — Bath taxpayers would be looking at a property tax rate increase of just more than 5 percent, he said.

No cuts to programs or services are included in the proposed municipal budget.

Increases are due in part to rising health insurance costs, fuel costs, a $45,000 state reduction in municipal revenue sharing and a 3.4 percent salary increase for all municipal employees — union and non-union — that was deferred from last year, according to Giroux.

Following an April 23 vote by the RSU 1 board of directors to change the regional school district’s cost-sharing formula, the city learned that its share of the RSU 1 budget would increase by $460,612.

Subsequently, city councilors cut approximately $120,000 from the municipal budget during their May 7 workshop, including demolition costs for the former nunnery building on Sheridan Road and a proposal to add fencing at the South End Park, Giroux said.

On May 23, the council will hold a public hearing on the proposed municipal budget, and look to adopt a final budget at the June 6 City Council meeting.

bbrogan@timesrecord.com