ORONO – The proposed municipal and school budget of $13 million for 2003-2004 represents a 2.75 percent increase over the current budget.

The roughly $350,000 increase would raise the mill rate from $24.30 per thousand dollars of valuation to $25.40.

A public hearing on the budget will be held at 7:30 p.m. Wednesday, June 11, in council chambers. The budget adoption will take place at 7:30 p.m. on Monday, June 23, in council chambers.

On the municipal side, the $6.3 million budget doesn’t represent an increase over the current year, although a drop in revenues has increased the portion to be raised through taxes, according to Town Manager Gerry Kempen.

The revenue decreases included a drop in the town’s investment earnings, as well as in undesignated funds appropriated last year to cover capital improvements, he said.

Among the budget increases are an additional $63,228 for the fire department to cover union-negotiated salary increases, an additional $35,254 to public works for winter road maintenance and $22,843 for benefit increases in various departments.

“The budget assures that our current services will continue at previous levels,” Kempen said.

While the proposed town budget doesn’t reflect a cut in current services, Kempen is urging the council to consider doing away with the spring or fall curbside pickup of brush, furniture items and electronic goods.

“I think it would be in the best interest of the town to have some sort of amnesty period where residents could drop items off at the town landfill for free,” he said.

On the school side, the proposed $6.7 million budget represents a $367,871 or 5.8 percent increase over the current budget. Among the proposed increases are an additional $176,718 for existing employee salaries and an additional $111,769 for existing employee benefits, including healthcare.

Due to increased state aid to education and a $125,000 surplus in tuition revenue, the proposed budget will only require a 2 percent increase or additional $72,903 in town funding.

The proposed school budget meets important department needs, but also allows for long-term strategies to be addressed, according to Superintendent Thomas Perry.

“The budget allows us to maintain our facilities in a reasonable manner,” Perry said Friday. “It also allows us to continue work on school initiatives such as our advisor – advisee program and the development of personal learning plans.”