The Old Orchard Beach Town Council voted to adopt a $47.6 million combined budget Tuesday night.

The total proposed budget was originally $47.9 million, including capital funding: roughly $31.5 million for the municipal budget and $16.4 million for the Regional School Unit 23 budget. 

The adopted municipal budget sits at $31.2 million. Councilors shrunk the capital funding portion of the budget to $2.6 million, down about $370,000 from the original proposal.

The school budget did not change and was approved by voters June 9.

The amount raised from non-property tax revenue will be $9.2 million, which was approved after an amendment to the budget.

During Tuesday night’s meeting, councilors also amended the appropriation of unassigned funds from $500,000 to $1.5 million. That will take the expected mill rate to $11.98, a 3.3% increase from last year.

The mill rate had been estimated at $12.28 in April, but keeping the tax rate under $12 was a priority in building the budget, officials said.

With the amendments — which both passed 5-0 by the Town Council — the owner of an Old Orchard Beach property valued at the median $490,000 will pay about $5,870 in property taxes, up roughly $130 from last year.

Town Council Chair Shawn O’Neill said a York County tax increase of 16% meant residents could see close to a 7% tax hike without the cushion from the unassigned fund balance.

Other drivers of the increased budget include raises in wages and benefit rates for town employees; infrastructure improvements, including some that will improve climate resiliency; and operation and maintenance for the town’s wastewater treatment plant.