WATERVILLE -- Councilors on Tuesday voted unanimously to approve a proposed $37.9 million municipal and school budget for 2008-09 -- and must take two more votes to finalize the plan.

They also voted 4-3 to relinquish control over part of Mayflower Hill Drive through the Colby College campus, with two more votes needed on that matter as well.

If the budget passes as is, the tax rate would decrease from $24.90 per $1,000 of valuation to $24.40.

This would be the fourth year in a row that the tax rate decreased.

Councilors said Tuesday that the budget numbers may change between now and the council's second and third votes, scheduled for May 20 and June 3, respectively.

The public is scheduled to vote on the school budget June 10. This year the state is requiring that residents vote on the school budget after councilors approve it; in previous years, the council had the final say.

Council Chairman Dana W. Sennett, D-Ward 4, said the council vote Tuesday night was taken earlier than usual in the budget process to compensate for the changes.

"It's a procedural vote," he said.

Mayor Paul R. LePage asked School Superintendent Eric L. Haley if he has heard back from the state on a request by Waterville to have an alternative plan to school consolidation. The state is requiring schools to consolidate and Waterville had explored merging with Messalonskee and Winslow schools but backed out because the cost to the city would be significant, according to Haley.

He said he has not heard from the state on the alternative plan request, but was told that schools planning to consolidate would be considered first.

"Alternative plans like ours would be a second priority," he said.

Councilor Stephen R. Aucoin, D-Ward 7, wanted assurance that outside agencies asking the city for money this year sign contracts with the city if the funding is granted. He also asked that the council be given more time to review Waterville Public Library's request for renovation funds.

City Manager Michael Roy said time will be set aside at next Tuesday's budget workshop for that purpose.

On the Colby Road issue, Aucoin and councilors Charles "Fred" Stubbert, D-Ward 1, and John O'Donnell, D-Ward 5, voted against discontinuing part of Mayflower Hill. Sennett and Councilors Henry Beck, D-Ward 2, Rosemary Winslow, D-Ward 3, and Thomas R. W. Longstaff, D-Ward 6, voted to approve it.

Colby wants to take control of the road and spent $5 million to $7 million to reconstruct it and make it safer.

As part of the multimillion-dollar deal, the college and state Department of Transportation would make improvements to Lincoln/Chase Avenue and Pleasant Street.

The city would give up its easement over part of Mayflower Hill.

Campus Drive, the road that connects the top of North Street Hill to Washington Street, would continue to be a public road.

The city's giving up control of the road through campus relieves the state of having to maintain it.

The state was to have fixed Pleasant Street last year but told the city it did not have the money to do so. Lincoln Street is also a state-aid road, but the city has had to spend its own money to make some improvements to it.

Some Planning Board members on Monday said the city's giving up its easement over part of Mayflower Hill gives Colby the right to prohibit public access immediately, despite the fact that it could not physically close the road for seven years.

Colby officials have said the college does not plan to close the road to the public.

Amy Calder -- 861-9247

acalder@centralmaine.com