"I appreciate the vote of confidence from the citizenry," he said. "I was running on my character and the record of the last four years as a council member."
McAulay, who lives at 107 Fairview Drive, congratulated Murphy on his victory but said he feels he could have brought positive change to town government.
"The people have spoken and they're going to have to live with their decision for the next two years," he said. "They talked change, but they obviously didn't want it."
Mills finished first overall in balloting for the council, with 268 votes, Close said. Yost was a close second with 251 votes. Trailing them were Jack O. Hill Jr. with 239 votes, David D. Smith with 112 and Timothy Arnold with 40.
Of the 913 registered voters, 494, or 54 percent, cast ballots, Close said.
Murphy said he wants to oversee several existing projects before launching major new initiatives. He said he looks forward to finishing a comprehensive upgrading of the town's water system. He said the work should be completed by 1998.
"We want to kind of nurture that thing along," he said.
Murphy said he also wants to move ahead with plans to turned a burned-out building in town into a mini-park that will connect Main Street to the Rail Trail. The Rail Trail is a bike trail running from Big Pool to Hancock that Murphy hopes will boost tourism.
Hancock also is preparing to hire another part-time police officer and to renovate its sewer system.
"Our systems have kind of worn out," he said. "We're an old town."
As mayor, Murphy will receive $800 a year. The council members each will receive $600 per year.