Residents in the new town of Chebeague Island approved a $2.7 million municipal budget and a $901,000 school budget at their second annual town meeting Saturday.

Voters also re-elected Donna Damon to serve a three-year term on the five-member board of selectmen. Beverly Johnson was re-elected to a three-year term on the school committee.

The town’s $2.7 million budget is a $10,700 increase over the current budget. Most of the increase resulted from debt payments the island incurred when it separated from the town of Cumberland and Maine School Administrative District 51 to become its own town last July 1, according to town administrator Scott Seaver.

The adopted school budget is a decrease of $15,000 under the current budget. It now must go to town voters on Tuesday for validation, a new state law requirement.

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