LEVANT – The town’s taxpayers likely won’t see an increase in their mill rate as part of a 2005-06 budget that is down slightly from last year, according to preliminary budget figures released by the town manager.

The projected mill rate will hold steady at $16.80 per $1,000 of valuation as part of the estimated $920,000 budget, Town Manager Scott Pullen said Thursday.

That means the owner of a house valued at $100,000 would pay taxes of $168.

Overall, the budget is down less than 1 percent because of minor savings in several areas such as the town manager’s salary and membership dues, he said.

The town manager’s salary was cut $5,000 from last year, leaving $35,000 in the budget for that position.

Though Pullen has been paid $20,000 a year to work part time since his hiring in December, he budgeted for a full-time position with benefits in case he leaves or the selectmen decide they want a full-time manager, he said.

“I absolutely don’t have any plans to go anywhere,” he said.

The previous manager worked full time and was paid nearly $40,000 a year with benefits.

When his agreement with the board expires in July, Pullen said, he will ask the board for comments on his performance and salary.

More savings will result from canceling the town’s membership dues to the Bangor Chamber of Commerce, at $285, and the Penobscot County Council of Governments, at $820.

“I just think we saw little value for our membership there,” Pullen said.

Expenses are expected to rise, however, in other parts of the budget. Pullen said he assumed a significant increase in the school budget, which is still being prepared, and he set a low estimate for the town’s valuation to offset the homestead exemption.

Changes to the homestead exemption program are outlined under LD 1, the state’s property tax relief bill. Under the changes, the state is increasing the exemption from $7,000 to $13,000 but is refunding towns for only half or $6,500 for each claimed exemption.

Municipalities now are responsible for making up that loss in property taxes. In Levant, the homestead exemption changes will cost the town $60,000 to $70,000, Pullen said.

“We’ve had pretty substantial growth in the last four or five years,” he said.

Other major expenses are outlined in the highway and roads section of the budget, which is up just more than 8 percent from last year. Much of the increase results from a $185,000 bond approved by voters last year to redesign the Griffin Road and South Levant Road, Pullen said.

Because the town paid off all of its prior debt this year, the goal is to fund the project with cash instead of the loan, he said.

“We became debt-free this year,” Pullen said.

A public hearing on the budget will be held at 7 p.m. Wednesday, May 11, as part of the regular selectmen’s meeting.

The public hearing also will include two proposed ordinance changes, one that amends the requirements for screening or landscaping as part of subdivision plans, and one prohibiting unlicensed mobile home parks from accepting new residences.

The annual town meeting is scheduled for 9 a.m. Saturday, June 25, at the Levant Elementary School.