WATERVILLE — The City Council on Tuesday is scheduled to take a second, final vote on a proposed $38 million municipal and school budget for 2016-17.

The meeting will be at 7 p.m. in the Council Chambers at The Center and will be preceded by an executive session at 6:45 p.m. to discuss labor negotiations.

The council on June 21 voted 5-2 to approve the proposed budget, which includes $30,000 for Waterville Main Street. That organization initially had asked for $40,000, which it had received from the city in previous years. This year, some councilors have argued that the nonprofit organization should receive less, while others ask that it be fully funded, especially at a time when Colby College and the city are working to help revitalize downtown. Colby pledges $30,000 annually to Waterville Main Street.

If the council approves the $38 million proposal, the tax rate would decrease by 20 cents from $27.80 per $1,000 worth of valuation to $27.60.

Council Chairman John O’Donnell, D-Ward 5, and Councilor Steve Soule, D-Ward 1, voted against the proposed budget June 21, saying if an item is added to the proposal, something else should be removed. O’Donnell recommended funding be given to Waterville Main Street contingent on performance.

Other councilors said they received many calls from residents asking that funding be included and eliminating it during a revitalization effort would be a bad idea. Meanwhile, a proposed code enforcement office position for $65,080 that initially was in the budget was removed, though some councilors want it reinstated. Councilors on Tuesday may add or delete items from the proposed budget.

The proposal represents a $543,000 increase over the current budget. However, revenues are up $665,000 so the amount needed from taxation is down $122,000, according to Chuck Calkins, the city’s finance director. Most of the proposed increase is $348,000 for a payment on a bond the city took out last year for roads, equipment, the City Hall roof replacement and other items. Standard wage hikes and money for police retirement represent the balance of the increase. The city formerly had a credit for police retirement, but that credit has run out.

Revenues include $300,000 from the sale of part of The Concourse to Colby College, $214,000 in vehicle excise taxes, $191,500 in homestead reimbursement, $131,685 in drug forfeiture money and $59,000 more in tax increment financing funds offset by $304,000 less in use of fund balance, or surplus.

While the tax rate is expected to decrease if the proposed budget is approved, the city’s ongoing revaluation will cause some people’s property taxes to increase. Some residents’ taxes will decrease and some are expected to stay the same, according to city officials.

In other matters Tuesday, the council will consider adopting an ordinance regulating medical marijuana facilities and repealing an earlier ordinance. Also, councilors will consider changing the zone at 30 Chase Ave. to allow for apartments, warehousing and offices to be built inside the former Seton Hospital, accepting a Federal Aviation grant, appropriating tax increment financing funds for Hathaway Creative Center, renaming parts of Western Avenue Lee Way and accepting a new city street, Mount Merici Avenue.

Amy Calder — 861-9247

acalder@centralmaine.com

Twitter: @AmyCalder17

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