SOUTHWEST HARBOR — Education spending, pay raises and new reserve accounts have driven the proposed total municipal budget for the coming fiscal year to $4.8 million, or about $650,000 more than the current year.

Voters will decide whether to approve the $4,841,389 budget at town meeting set for 7 p.m. May 2 at the Pemetic Elementary School.

If voters approve the budget, the owner of property valued at $100,000 would pay about $1,380 in taxes, or about $120 more than last year, according to Southwest Harbor Town Manager Ken Minier. Minier cautioned that the final figures would not be determined until assessments are complete.

Education spending makes up 66 percent of the proposed municipal budget, Minier said. Funds to pay for expansion and renovation projects for both the local elementary school and islandwide high school have pushed up education costs by $469,387 this year.

The cost of operating the town makes up about 31 percent of the overall budget, Minier added.

A 4 percent increase in salaries “pretty much across the board” plus increases in benefits costs account for a large chunk of the increase this year, according to Minier.

The proposed town budget includes rainy-day funds such as $12,000 to double an existing reserve account for a new police cruiser. Start-up funds for new reserve accounts are being proposed, including $4,500 for police and dispatch equipment and $30,367 for waterfront projects (harbor master’s boat and motor, and office and restroom, as well as town floats and finger floats).

An improved base of operations for the town’s public safety services has been a topic of discussion on and off throughout the winter. The budget to come before voters in May proposes to set aside $50,000 for a public safety building. The money may be applied to a building or land on which to locate a future facility, said Minier.

No land has been formally considered for the location of that building, Minier added, saying that selectmen have some ideas and “always keep their eyes open” on properties.

Additional expenses this year include a $10,000 contribution for the islandwide shuttle bus system, Island Explorer, and $10,000 to paint the outside of the town office.