The Martha’s Vineyard Commission last week approved a $1.42 million budget for the coming fiscal year, an increase of less than one per cent over last year.

There will be no increase in town assessments, which total $1,012,940. All six Island towns, along with Gosnold, cover the bulk of MVC costs through property taxes.

Payroll expenses account for most of the annual budget. Overall, salaries decreased half a percentage point, to about $806,450, or 83 per cent of the total budget. A 1.8 per cent increase in cost of living expenses and a 2.4 per cent merit increase are in line with the average town and county step increases for the prior fiscal year.

Capital improvements and building maintenance saw the largest increases this year. A total of $15,000 is budgeted for interior repairs and improvements at the Olde Stone Building in Oak Bluffs, which is slated for new walls and an air conditioning system on the third floor, and new carpets. An equal amount will go toward maintaining the building and equipment. Both items mark a 50 per cent increase over last year.

Legal spending is projected to be flat this year at $68,000. In an effort to reduce future spending, the commission was recently briefed by MVC attorneys in regard to proper hearing, record-keeping and decision-making procedures.

A total of $363,000 from grants, gifts and contracts is budgeted for the coming fiscal year, including a $5,000 state grant for GIS mapping. The commission plans to pursue a variety of additional funds in the future.

In other business last week, the commission voted to accept a revised list of conditions related to the Southern Woodlands subdivision in Oak Bluffs. First approved in 2004, the original plan had languished, but was revived last year when a group of investors purchased the property in a foreclosure auction.

The plan is now confined to residential housing and includes minor lot line adjustments and provisions related to the relocation and preservation of special ways. New conditions also include a $700,000 contribution to affordable housing in Oak Bluffs, and nitrogen mitigation efforts to protect water quality in Lagoon Pond.

Earlier this month, the commission voted not to require a full modification hearing, but were unclear about some of the conditions. Last week the conditions were unanimously approved along with a number of clarifications. The project now heads back to the Oak Bluffs planning board for further review.

The commission’s next meeting is Feb. 4 at 7 p.m.