PEMBROKE — The Pembroke Town Council on Monday unanimously adopted a $5.7 million budget for the 2015-16 fiscal year that includes no property tax increase and gives full-time employees a 1 percent salary increase.

“We believe we have a manageable budget that will substantially serve town residents,” said Councilman Channing Jones, who is serving as the town’s mayor pro tem while the council searches for a replacement for the late Mayor Milton Hunt.

Town Manager Tyler Thomas told the council before members voted that the budget reflects the council’s input at its last budget work session on June 17. In addition to maintaining the tax rate at 64 cents per $100 of property value and increasing pay for full-time employees, the budget does not include any utility rate increases.

“It includes several capital projects, including the purchase of two police vehicles, the purchase of a fire truck, and the installation of two generators for our water wells,” Thomas said. “It (also) reflects the loss of privilege licenses repealed by the General Assembly.”

According to Thomas, the cost of employee health insurance will see a jump of about 7.7 percent. The town will also lose about $35,000 in privilege license revenue, he said.

“Ultimately, rising insurance costs coupled with the loss of the business privilege license resulted in a very restrictive overall budget,” Thomas said..

In other business, the council agreed to hold a public hearing on Aug. 3 on a proposed amendment to the town’s Unified Development Ordinance that would allow private streets in a subdivision. The council will not meet in July.

According to Dale Holland, of Holland Consulting Planners, the Hunter’s Run subdivision on Candy Park Road wants to become a gated community with a private street. The request for private streets was not included in subdivision plans approved by the Planning Board, Holland said.

Holland said the problem facing the town is that there is now a sewer line owned by the town under the street and there are water lines in the public right-of-way. Holland said that if the town agrees to the public street in Hunter’s Run becoming private, it must be “made clear” that the subdivision’s developer will also become responsible for utilities that are in place. He said there also needs to be an arrangement that ensures that there will be 24-hour emergency access through the subdivision.

“The developers want to make this a gated community,” Jones said. “We need to look at a way to do this and make it happen if possible.”

The council also:

— Approved the proposed 2015-16 fiscal year budget for the Pembroke ABC store.

— Set Aug. 3 for a public hearing on a request to allow hand washing of cars in the central business district. The request is from former Councilman Allen G. Dial.

— Heard a brief report from the town’s Recreation director, Bryan Graham, about the state Dixie Youth Baseball tournament being held at the Pembroke Recreation Complex this weekend.

According to Graham, the tournament will bring into the community at least $20,000 that can be used to help fund Recreation programs.