GARDINER -- City councilors this week approved a $3.5 million budget that's 1.5 percent higher than last year's spending plan.

City Manager Jeff Kobrock said the council made one last cut of $50,000 from the budget before voting on it Wednesday night.

"The management team simply went through and found a little bit here and a little bit there," he said.

The council voted 7-1 to approve the budget.

Lone holdout Philip Hart, a longtime council member, said he wanted no increase in the budget.

"The problem is a lot of people on our council do not understand the economy right now," he said. "There's a lot of people in this community that's going to be hurt by this budget."

Mayor Andrew MacLean said councilors made cuts but did not want to hurt key services such as police, fire and road maintenance.

"I am comfortable, and six other members of the council were comfortable, that we have scrutinized this budget closely," he said.

Complicating matters is the city's recent revaluation, which has increased property values for homeowners. As a result, the city is recalculating its tax rate, which has yet to be finalized, Kobrock said.

Using an estimated tax rate, which could change, Kobrock said the new budget will mean an extra $75 on a $100,000 property.

"We can't set the mil rate until we get further into the revaluation," he said.

The council will continue discussion on the revaluation July 30, but the period for informal hearings -- where citizens could get an explanation of their revaluations -- has ended, Kobrock said.

In cutting an additional $50,000 from the budget, the city deferred capital projects and made "cuts in many, many less noticeable lines," he said.

"The budget maintains current services," he said. "I think that's important to the community. It's an extremely tight and frugal budget."

Hart said oil prices, a weak economy and the city's revaluation make for a difficult combination for taxpayers.

"This is a year things really should have gotten pulled tight," he said.

Susan Cover -- 621-5645

scover@centralmaine.com