Muttontown officials on Tuesday adopted a $4.089 million annual budget with a property tax levy that Mayor Julianne Beckerman said “is well below” the 2 percent cap set by Albany.

The budget for the 2012-13 fiscal year beginning June 1 includes $2.58 million for Muttontown police, up 4.13 percent from the current fiscal year.

It also provides for a 67 percent hike in counsel expenses, set at $125,000, and a 150 percent increase in contingency funds to $100,000.

Beckerman said the increase for the village attorney covers code revisions and master plan reviews he is to undertake. She said the contingency funding is for natural disasters.

The total taxable assessed value for residents outside the East Norwich Fire Company protection area dropped 7.15 percent to $177.9 million, and their tax rate increased 9.61 percent to $1.54 per $100 of assessed valuation.

The new budget sets expected real estate tax revenue for that group of residents at $2.74 million, up from the current fiscal year’s $2.69 million.

After including factors used in the state’s formula, Muttontown’s levy falls under the state’s 2 percent cap, Beckerman said.

The board of trustees adopted the budget, 5-0, with two members absent.

Muttontown also continued a public hearing — but did not take action — on the proposed installation of cellphone antennas on three utility poles.

Though the public comment portion had closed, trustees heard a fresh round of resident condemnation of the project.

Resident Larry Smiley said it was unnecessary to consider Crown Castle’s application in the first place, saying cell service is sufficient and questioning the board’s motives.

Resident Leonard Gero said approval would lead to the proliferation of antennas in the area.

“Once you let this go, it’ll be in everybody’s backyard,” he said.

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