NEW GLOUCESTER – A public hearing to air the town’s proposed municipal budget will be held at 7 p.m. on Wednesday at the Meeting House in Lower Gloucester.

The gross budget, including the Pineland tax incentive finance segregating funds paid by October Corp. at Pineland Center, totals $3,687,568.

Based on revenue projections, the town expects to offset the budget by $1,995,426 and use $675,300 from an undesignated fund balance. The proposed net budget to be raised by taxes totals $1,016,842, compared to the 2008 budget of $961,197 in taxes.

Town Manager Rosemary Kulow said in a letter highlighting the budget plan that the municipal budget has a tax commitment under the LD 1 scenario, the town’s portion of the mill rate changes from FY ’08 rate of $2.261 per $1,000 valuation to $2.267, an increase of about half a cent per $1,000 of valuation.

She said the Cumberland County tax levy on New Gloucester is 11 percent higher, at $262,827, than last year and SAD 15 budget numbers are yet not final.

Wages and salaries for town employees are increased up to 4 percent, comprising a cost of living adjustment and merit increase, depending on performance.

There will be fewer educational dollars and the town manager will receive no funding to attend an annual conference. Less money for heat and electricity is also proposed.

Capital reserve accounts to pay for costly items have been reduced from the requested $1,002,500 to $382,500 to meet a goal of no municipal tax increase.

Selectmen propose funding capital improvements with capital reserves, and funds from the Maine Department of Transportation’s Urban and Rural Improvement Program for paving.

Voters will be asked to approve the budget at the annual town meeting on May 5.