AUBURN — The City Council will hold a public hearing and first reading Monday on the proposed 2023-24 budget of $112.85 million budget for municipal, school and county spending.

The proposed municipal and school budgets for the coming fiscal year reflect a 5.4% increase from this year. If approved as is, it would reflect an 81-cent increase to the property tax rate. The increase to $23.56 per $1,000 of assessed valuation would add roughly $202 to the annual tax bill of a resident with a home valued at $250,000.

However, according to City Manager Phil Crowell, those numbers are based on the city’s current valuation, which he expects will increase. He said using a conservative estimate, he expects increased valuation to allow a tax rate of $23.40, an increase of 65 cents from this year.

Given the economic climate and level of inflation, officials said Friday that the proposed $51 million municipal budget “is a huge win for Auburn.”

“We’re in a really strong position going into the first reading and vote Monday night,” Mayor Jason Levesque said.

In his initial budget presentation, Crowell said “the entire nation has been faced with inflation, which creates uncertainty in local government revenue and expenditure forecasts.” He said that, like other municipalities, staffing shortages and competition amongst one another — and the private sector — for positions has increased. Auburn’s workforce costs represent 73% of the requested city budget increase.

“Without the recent reduction of 12 positions, our workforce cost increase would have reflected an 80% increase,” he said.

However, due to development activity in Auburn over the past year, officials are confident in a valuation increase, and a subsequent reduction in the property tax increase.

While the council will hold a first reading Monday, the School Committee isn’t slated to approve its $58.88 million budget until Wednesday. The council will hold a second and final reading on the budgets May 15.

Auburn’s share of the county tax totals $2.97 million.

The school budget validation vote is scheduled June 13.

Also on Monday, the council is expected to hold a hearing and vote on next year’s $13 million Capital Improvement Plan. The largest items include $1.5 million toward the new Police Activities League Center and $3 million toward the new Engine 2 fire station in New Auburn. Nearly $7 million is going toward Public Works projects like road reclamation and reconstruction.