MEXICO – Selectmen have adopted a proposed 2004-05 municipal budget of $1.5 million, a figure that if approved by residents, will reflect a 15 percent increase over last year’s budget of $1.3 million.

“This has been a long process, with a lot of built in increases,” said Town Manager Joseph Derouche.

Among those increases is more money for various reserve accounts.

An example of not having enough money put away for an unexpected event, he said, is the replacement of the furnace at the Mexico Recreation Center at a cost of $50,000. He doesn’t want to see that happen again. About $60,000 has been added to various municipal reserve accounts.

“That was a wake-up call,” he said.

Also on the increase are insurance costs, which in turn have boosted requested funding for such organizations as Med-Care Ambulance Service and the Northern Oxford Regional Solid Waste Center.

Other factors affecting the proposed budget are higher fuel prices, a hike in water fees that have resulted in a $10,000 increase in fire prevention, a 3 percent wage hike for the town’s 21 full-time and eight part-time employees, and a proposal to add a fifth police officer to the Mexico Police Department.

Derouche said the new position was necessary to offset the growing number of overtime hours put in by the current force. He said, too, that adding a fifth officer would allow more time for investigations and for additional patrolling of the increasing number of new businesses.

He expects increased revenues and a higher town-wide state value to offset much of the cost to taxpayers.

The current tax rate is $28.80 per $1,000 valuation. If all articles are approved at the June 7 town meeting, Derouche said residents could expect a $1 per $1,000 of assessed value increase in their property taxes.

With the uncertainty of how the state, or passage of one of the referendum questions would affect property taxes, Derouche said the entire municipal budget could be scrapped and begun all over again if such action severely affects the revenue stream.

He is positive, however, about the direction the town is taking.

“It’s good to know we are continuing to grow with new businesses, a new tax base and hopefully, new population. This is a tightly run budget. Uncontrollable increases are impacting us the most,” he said.

eadams@sunjournal