NORTHEAST HARBOR — Over 200 Mount Desert residents gathered Monday evening at their annual town meeting and approved an increase of 15.2 percent for their school budget for next year. The town’s total budget for next year, as approved at the meeting, reflects a 13 percent increase.

Even though an increase of 12 percent in teacher salaries had already been negotiated for the 12 classroom teachers at the Mount Desert Elementary School, the question of teacher pay became an issue at the meeting.

Speaking in favor of the proposed budget, Joanne Smith, chairman of the local school ccommittee, explained that the 12 percent pay increase for teachers. “We have been concerned about the off-island competition for teachers by schools who pay better salaries. Reasonably priced housing (on Mount Desert Island) is a problem,” Smith explained.

“We have been giving a 6 to 8 percent increase each year while other schools have been giving 8, 9 and 10 percent each year. The school committee feels we need to be competitive,” she added.

Mount Desert’s warrant committee proposed that $40,000 be cut from the education budget. As teacher salary contracts were already signed, suggestions were made that the school not hire a new teacher next year. Money could also be saved if an enclosure for the oil tanks on the school grounds, expected to cost $10,000, was not built.

Charles Pugh, of Pretty Marsh, appealed to town voters to consider the effect of such a budget increase on the town’s property taxes. “The increase in property tax of over 13 percent in the midst of an economy that may be in a recession (should be considered),” he said. “Here we are going ahead and writing blank checks that may be very important and very noble, but it is getting to be impossible for new families to move here.

“We can’t responsibly vote for property tax increases that are three times the rate of inflation,” Pugh said.

School Principal Henry Ashmore argued that if an additional teacher is not hired, 25 third-grade children may be in a classroom next year with only one teacher.

Voters then approved the total school budget as requested by the school committee.

In other matters, $220,562 was approved for the fire companies in Northeast Harbor, Somesville, Seal Harbor and Otter Creek. Of that sum, $15,000 is apparently for the purchase of a new tank for the Otter Creek fire truck.

Another appropriation, which has sparked discussion in the past, was approved Monday evening when $50,000 was set aside for the eventual construction of a new harbormaster’s building at Northeast Harbor. $90,000 is now available for the construction, with the newly appropriated sum being added to last year’s appropriation of $40,000. Voters gave their approval, also, to the construction of the building.

The creation of a Board of Assessment Review was also approved. The purpose of that board will be the hearing of appeals which are expected after the upcoming town revaluation.