Waterford — The Board of Finance at its meeting Wednesday approved a tax rate increase of 3 percent, or 0.75 mills, bringing the tax rate for 2014-15 to 24.8 mills.

Increases in capital expenses and debt service are responsible for 90 percent of the tax rate increase.

The tax rate is based on the $87 million budget the Representative Town Meeting approved Monday. The budget that the board proposed to RTM last month showed a tax rate increase of 0.85 mills to 24.9 mills.