Sanford residents will vote Tuesday on municipal and school budgets that would increase the property tax rate by 71 cents.

While the budget does call for a tax increase, most homeowners in the city will not see an increase on their tax bills – and some people may see a decrease – because of an increase in the state Homestead Exemption.

The $24.2 million city budget and $38.1 million education budget don’t call for any significant changes in operations, but does result in a “modest” spending increase, said Mayor Tom Cote. The combined budgets are up 2.44 percent and will add 71 cents to the tax rate, which will increase to $22.75 per $1,000 of valuation.

That increase would result in an extra $120.70 on the tax bill of a home valued at $170,000. But city officials say that increase will be offset by an increase in the Homestead Exemption for anyone who owns a home valued at $170,000 or less.

“The vast majority of home in Sanford are valued at $170,000 or less,” Cote said. “Most residents won’t see an increase this year.

The proposed city budget, which was approved by both the budget committee and City Council, adds several positions in the Public Works Department. It also funds the hiring of an assistant city manager to work on housing issues in Sanford.

If the school budget is approved, four positions that had previously been funded by a Nellie Mae grant will be eliminateed. Cote said educational programming in the school department will remain the same, but a budget increase was needed to deal with special education costs and increases in salaries and benefits.

Cote and City Councilor Victor DiGregorio voted against the budget, although Cote says he now supports the proposal. He said he would have liked to see a slightly smaller increase in spending. DiGregorio has been posting signs across the city urging people to vote against the budget and calling for no tax increase.