AUBURN — The City Council gave initial approval Monday to next year’s $54.25 million municipal budget and sent the $62.12 million school budget to voters.

The fiscal 2025 budget, which runs from July 1 to June 30, 2025, would result in a $1.36 increase to the property tax rate.

At $24.11 per $1,000 of assessed valuation, it would add roughly $204 to the annual tax bill of a resident with a home valued at $150,000 or $340 to a home valued at $250,000.

However, Finance Director Kelsey Earle has said that an expected increase in citywide valuation will likely reduce the projected impact to the tax rate.

Both council votes were 5-2, with Belinda Gerry and Benjamin Weisner opposed.

During discussion, officials debated the overall increase to both budgets. While some councilors said they have heard concerns from constituents over raising taxes, others said no more cuts could be made without staff layoffs or impacting services.

Mayor Jeff Harmon said that the 5.9% increase is “substantial” and will be “tough for some people to accommodate,” but said the “increase is the best the council could do and still deliver the services the community wants to have.”

“We went over this budget with a fine-toothed comb, met week after week, and no one was able to come up with cuts,” Councilor Rick Whiting said. “The council did its due diligence.”

A large percentage of the city’s increase came from roughly $1 million in previous years’ negotiated wages and benefits following a number of unsettled collective bargaining agreements during the previous two fiscal years.

Gerry argued that the situation “was caused during last few terms” when more city staff positions were added.

“I know there’s a lot of people out there who cannot afford the increases we’re going to do,” she said.

Councilor Steve Milks, while voting in favor, urged the city to “be serious about economic development and bringing growth into our city” in order to stave off increases in the coming year. The city also has a full revaluation on the docket. Milks said if more tax revenue isn’t added, “We’re going to have to cut people and services next year.”

During discussion on the school budget, several councilors lauded the school department for coming in with a 5.2% increase in a tough financial year for schools in which many surrounding districts are putting forward 10% increases.

Milks said he would support the budget this year but said he’d like to “move forward quickly” with an evaluation of school buildings and “seriously look at how we can consolidate.”

Councilor Leroy Walker, who also voted in favor of both budgets, said the school department “did as much as anyone could have done,” and that a “great working relationship between the city manager and superintendent produced about as low an increase that we could get.”

The school budget validation referendum will be held on June 11.

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