DEER ISLE – A contested race for the board of selectmen drew a lot of interest at the annual town meeting Monday.

More than 600 residents cast ballots in the election, including 128 who cast absentee ballots. Many of those residents showed up for the afternoon session to find out who had won.

“It was pretty crowded,” said First Selectman Neville Hardy.

At the polls, Third Selectman Lewis Ellis withstood a challenge from Kathleen Billings to retain his seat. Ellis received 342 votes, Billings, 271.

Incumbents also retained their seats on the district school committee. Deer Isle voters supported the incumbents giving Mark Cormier 410 votes; Aimee Eaton, 397 votes; and challenger Donald Sargent, 274 votes.

Combined with the votes from Stonington, the other town in the school district, Cormier received a total of 500 votes; Eaton, 518; and Sargent, 323.

Voters approved the municipal budget articles totaling $927,465 during the annual town meeting Monday.

The budget represents an increase of $19,710 from last year, according to Selectman Neville Hardy. Of the total budget amount, $307,985 will be raised from taxes, an increase of $9,630. That slight increase will have little impact on the town’s mill rate, Hardy said.

“We’ll have to wait and see what happens with the school budget,” he said.

Voters from Deer Isle and Stonington, which constitute the school district, will meet later this year to vote on the school budget.

There was little new in the budget this year. The overall increase resulted from an increase of about $21,000 in the solid waste account. Voters also approved a $2,500 increase in the salary for the town treasurer and tax collector.

New items that voters approved included $5,000 in funding for the Zone C Lobster Hatchery. The funds will come from the boat excise tax. They also approved $1,000 for the library.

Voters soundly defeated a proposed ordinance that would have imposed a six-month moratorium on new subdivisions in town.