LEWISTON — The City Council approved next year’s $53.5 million municipal budget with a unanimous vote Tuesday, sending the proposed $98.8 million school budget onto voters for the annual budget validation referendum May 10.

Overall, the fiscal 2023 budget will increase the property tax rate by $1.25 per $1,000 of assessed valuation.

City Administrator Heather Hunter said Tuesday that with a shift in the state’s Homestead Exemption program, a home valued at $250,000 would see about a $309 increase.

During discussions Tuesday, Hunter said the property tax increase will be the first for Lewiston residents in three years. She urged residents to keep in mind that officials managed “two fiscal years of tax rate reductions during the peak of the pandemic.”

From the start of budget negotiations, it was clear that both city and school officials were preparing for tough decisions in order to avoid a large tax increase. The initial outlook reflected more than a $4 tax rate increase.

A memo from the Finance Committee, penned by Councilor Lee Clement, said “all facets have worked in a concerted effort to maintain our level of service without a major tax increase. Thanks, and acknowledgement are due to all departments and staff for their cooperative effort, which has resulted in an anticipated increase of $1.25 down from the original $4.09. This is certainly more desirable than the initial starting point.”

The council’s appropriation of $53.5 million reflects the $50.37 million city budget, as well as the $3.15 million county budget. Including the school budget, the total fiscal 2023 spending plan is $152.4 million. The tax rate will increase from $28.26 to $29.51, which officials pointed out still falls under the $30 mark that has been viewed in recent years as a line not to cross.

Clement said to keep it under $30 “took real effort this year,” adding that the only way to avoid passing the mark eventually will be a citywide revaluation. A revaluation is planned over the next two years, which city finance staff has said would likely lower the tax rate considerably.

The council on Tuesday also adopted the annual Community Development Block Grant and federal HOME program budgets for next year. The funding is used toward services aimed at low-income families and housing. Councilor Linda Scott said while the funding has in recent years focused mostly on the Tree Streets neighborhood, which features two of the poorest census districts in Maine, she’d like the city to devote more of the funding to the Sunnyside Park neighborhood, which also qualifies for the funding.