LINCOLN – The Town Council will consider a $2.9 million municipal budget proposal at 6 p.m. Monday in council chambers.

Town Manager Glenn Aho estimates the town’s current tax rate of $19.30 per $1,000 of assessed property value could increase by 8 cents. A taxpayer with a home valued at $65,000 would pay $5.20 more in the tax bill.

Had the school assessment and the Penobscot County tax assessment remained the same as last year, Aho said, the tax rate would have dropped by 29 cents. He said the county tax assessment went up by $24,961 and the school assessment increased by $67,471.

Only a few residents turned out for Monday’s first public budget hearing. Don Worcester Jr. commended the council for presenting a good budget.

Rod Carr, council chairman, commended the efforts of Aho, the staff and the budget committee. “They have done a real good job … and have come up with a real good budget,” he said.

The municipal budget of $2,956,562 represents an increase of $98,774, or 3.5 percent compared with last year.

The amount proposed to be raised from local taxes is $1,239,183. It represents an increase of $16,400, or 1.3 percent compared with last year.

Aho said the municipal budget has been reviewed by the manager, the budget committee and the Town Council. “The town’s budget has been raked over and combed through,” he said. “For us to be able to produce a budget while toeing the line during a time when everything has increased, I think we have done a fine job.”

During the various budget reviews, officials have cut the initial amount to be raised from local taxes by $107,568.

The single largest increase in the budget proposal is for capital projects. Proposed is $292,702, an increase of $72,457 compared with last year. Proposed purchases and projects include: $80,203 for road construction; $78,500 for a new plow truck; $30,000 for the first lease payment on a new firetruck, which was approved by voters last year; $24,850 for a new police cruiser; and $15,000 for cemetery restoration.

The budget also includes $15,000 to provide merit pay increases for nonunion employees. Aho said the pay increases would be based on employees’ evaluations.

The budget includes funds to bring call firefighters (paid volunteers) rates more in line with area departments, who pay $10 to $12 per hour. Lincoln call firefighters pay rates now range from $6.12 to $9.59 an hour, depending on training levels. The proposal would increase the rates to a range of $8 to $12 an hour.

In other business, members of the Town Council on Monday expressed no interest in purchasing a vacant Main Street bank building for $150,000.

Aho said an official of Bangor Savings Bank had made the town the same offer as that made to SAD 67 earlier. Voters last week turned down the proposal for the school district to purchase the bank.