Staff Writer

 Town Manager Tom Hall’s presentation about school and municipal budgets last week took almost as much time as comments it generated during the April 28 public hearing.

Most speakers who commented focused on the $36.14 million school budget (including adult education), whether pleading for more funding or less.

The hearing at Town Hall last week was another step on the budget road that culminates with a referendum on the school budget. Polls will be open 6 a.m. to 8 p.m. in Town Hall Chamber A Tuesday, May 11.

The council’s second reading and vote on the municipal and school budgets was held Wednesday, after the Leader’s deadline.

While overall spending has been reduced, the proposed fiscal year 2011 budgets of more than $70 million could require a 48-cent increase in the property rate from $12.15 to $12.63. That increase would boost taxes by $144 on a property valued at $300,000.

The effect on tax rates is based on a projected $20 million increase in property valuations and an additional $10 million increase in taxable valuations due to reductions in the state Homestead Tax reimbursement program. Reductions of state revenue sharing and education aid will be more than $1.8 million.

 Final valuations will not be determined until the summer.

After the April 28 hearing, Hall said he anticipated councilors would propose amendments that will affect municipal budget totals before Wednesday’s budget vote. He expects the municipal budget will exceed the $13.7 million local tax limit mandated by the state as part of the LD1 law passed in 2006. Exceeding the limit requires council approval.

The $32.3 million fiscal year 2011 municipal budget Hall outlined asks for $14.8 million in property taxes, an increase from the current $14.07 generated from property taxes, and represents about 16 cents of the proposed 48-cent increase.

The $34.9 million fiscal year 2011 education budget would boost the property tax burden to $28.07 million, about $1.3 million more than the current budget. The referendum will ask voters to accept or reject the education budget and whether to continue budget referendums for another three years.

Councilors can amend the final amount of the education budget, but cannot alter specific budget lines, according to the town charter.

If voters reject the budget, the board of education will be required to present a revised budget for council approval within 10 days and a second referendum will be scheduled.

Staff writer David Harry can be reached at 282-4337, ext. 219