RUMFORD - Town Manager Jim Doar is frustrated.

Selectmen directed him Thursday night during a four-and-a-half-hour budget meeting to cut 1.5 percent from each municipal department as well as reduce the capital projects account by about $100,000.

The directive is the result of the selectmen's desire to keep the proposed 2008-2009 budget within the state's tax limit.

"The selectmen felt it was their responsibility to be fiscally responsible," Doar said Friday afternoon, something he said he doesn't fault them for.

But if none of the cuts were made, Doar said the current tax rate of $18.70 per $1,000 of valuation would have risen by about 50 cents.

"That's $48 for an $80,000 home," he said. "I believe the mill rate is more important than LD 1 (the state law dictating tax caps)."

The eventual 2008-2009 tax rate, however, does not take into consideration the amount needed for the town's share of the SAD 43 school budget. The school district's budget should be determined within a few weeks.

But Doar doesn't believe the schools should impact the municipal budget. He had said earlier that each of the town's departments had submitted tight budgets with little or no opportunities for more reductions while still providing the same level of service.

He emphasized that no municipal employee will lose their job.

The Fire Department is already in a reduction mode, with the eventual goal of maintaining an 11-person department, down from 14. That will be achieved through attrition, Doar said.

With the final reductions figured in, the department will go from last year's $900,000 budget to $829,000. The Police Department went from $913,000 to $916,000. It will maintain a 14-person department. Doar hasn't yet figured what the bottom line will be for the Public Works Department.

When all is said and done, Doar's goal is to reach a municipal budget of about $7.3 million. The state tax cap allowed the town to raise only about $125,000 over last year's amount.

All this could change, however, if the town Finance Committee decides to put some items back in the budget. Doar must present the selectmen's proposed budget to the Finance Committee by Thursday. That committee will then meet in mid-April to begin its deliberations. Voters at town meeting in June could see two recommendations if the Finance Committee disagrees with selectmen.

Earlier Thursday evening, selectmen had cut about $40,000 from some budget requests. This included reductions in such organizations as Black Mountain of Maine, the Greater Rumford Community Center, the River Valley Growth Council, and a myriad of other social service or special project organizations.

Doar said he may have a listing of specific cuts in municipal departments by mid-week.