WINTHROP — Property taxes could rise sharply under the initial 2011-2012 municipal budget proposal as presented to the Town Council on Monday.

In a letter accompanying the proposed budget, Joseph Young, interim town manager, wrote that he expects the property tax rate to increase from $13.28 to $15.72 for every $1,000 of assessed property value. In other words, a homeowner whose property is valued at $175,000 could expect to pay an additional $427 in annual taxes at the higher rate.

Jan Tewksbury, town finance director, stressed that the proposed rate hike was the starting point in the budget process and not the final result, which will come only after lengthy discussion and negotiation.

The proposed increase comes even though town spending for fiscal year 2011-2012 is projected to rise less than 2 percent, or just over $88,000. Employee wage increases are budgeted at 4 percent.

Last year, police and dispatch union members agreed to postpone their 4 percent raise until July 1 of this year.

Tewksbury noted that the town’s health insurance costs were expected to rise about 14 percent in the coming year.

It’s on the revenue side of the ledger where the town’s shortfall occurs. Revenues are expected to decrease by 7 percent, or just over $180,000. Much of that can be attributed to a decline in the town’s portion of state-municipal revenue sharing.

“Two years ago the town received $660,000,” Young wrote. “Next year’s budget estimate is $328,000.”

The bulk of the additional revenue from the proposed property tax increase would not go to the town, however, but to Winthrop’s schools, where the budgetary woes are particularly acute and the debate on spending cuts is heating up.

According to the budget proposal released Monday, the schools’ share of property tax revenue would climb by just more than $1 million, a 20 percent increase over last year.

In Winthrop, the school budget is debated and voted separately, although the town council retains certain budgetary powers over the schools, as spelled out in the town’s charter.

The next meeting to discuss the proposed town budget will take place on April 11 at 6 p.m. at the Town Office.

The Town Council also voted 6-0 to include in the proposed budget Manchester’s request for $42,091 to help fund repairs to Cobbossee Dam. They also debated a request from American Legion Post 40 to close the boat ramp at Norcross Point on Memorial Day, May 30, to host an antique car event at the site. Post officers later withdrew the request, saying they would relocate the event.