WATERVILLE — After debating funding a new economic development director role, the City Council passed its $66.8 million school and municipal budget on a 5-2 vote Tuesday.

City Manager Nick Cloutier estimates that the budget will increase the property tax rate by just under 5%, making it $17.84 per $1,000 of assessed property value. In the last fiscal year, the tax rate was $17 per $1,000.

“It’s not the perfect budget,” Cloutier said. “It’s one that we did, however, have a rigorous public process on for the last few months.”

Councilors initially voted down the budget proposal, after Councilor Rebecca Green, D-Ward 4, suggested not funding a new economic development director role as full-time. Green said she thinks the position is important but wanted to honor the fact that it’s a difficult budget year, with many other roles going unfunded.

The position would be paid for through tax increment financing funds, which subsidize economic development-related projects. Reducing the position to part time would have no impact on the tax levy.

With this amendment, Councilors Brandon Gilley, D-Ward 1, Samantha Burdick, D-Ward 3, Scott Beale, D-Ward 6, and Flavia DeBrito, D-Ward 2 voted no.

Gilley and Burdick also voted no on the budget’s first reading in June, when DeBrito was absent.

DeBrito said she felt the economic development position was important to the city achieving its long-term goals.

The council revisited its decision, voting to withdraw Green’s amendment, leaving the TIF-funded economic development position full-time. This came after Cloutier said there would be a rigorous selection process in hiring for the role, and that the council would be involved in defining the position and its responsibilities.

The city could still choose to make the position part-time in the future, Cloutier said.

Burdick said she was still concerned about the city relying too heavily on TIF funds, and that funding the position could mean other projects and priorities fall by the wayside.

The budget passed on a second vote, with only Burdick and Gilley voting no. When both voted against the first reading, they said the tax increase it caused was too high.

“We are in a better place than where we started and it sets us up to have an estimated tax increase below 5%,” Cloutier said. “More importantly, it also buys us time … to provide what is to be a better budget next year.”

This year’s budget includes an almost 10% increase in city spending, and Cloutier said he understands councilors would prefer to see an increase around 5% in next year’s budget.

Cloutier started his role in January, and said that with a year to prepare, he’s confident he’ll be able to make the necessary cuts.

The Waterville City Council is scheduled to meet next on Tuesday, July 21, at 6 p.m. in the City Hall Annex at 46 Front St.