MEXICO – If voters approve all 31 articles at Monday’s annual town meeting, the municipal budget will rise about 15 percent.

But Town Manager Joseph Derouche said that doesn’t mean the tax rate – $28.80 per $1,000 valuation – will rise accordingly.

He expects more money from fees, revenue sharing, excise tax, and interest bearing accounts to make up for most of the difference.

The 2004-05 budget is $1,537,158, up about $205,000 from this year’s operating budget of $1,332,531.

Much of the added spending can be attributed to a 12 to 15 percent increase in health, liability and vehicle insurance premiums and the recent jump in fuel costs.

Derouche said extra money has also been placed in the town warrant for Police Department matters. About $28,000 is needed to cover overtime costs that were more than expected during the past year. Also, the Police Department budget has jumped nearly $15,000 to help pay for adding a fifth officer.

The additional position should reduce overtime costs, provide more coverage for the growing community, and free up Chief Jim Theriault to conduct more investigative work, said Derouche.

More money is requested for some of the town’s capital accounts, including those earmarked for bridge or highway work and maintenance of town buildings, such as for the construction of an improved snack bar and bathrooms at the recreation park.

For the first time, selectmen have recommended making a donation to work being done to Black Mountain of Maine. All 21 full-time and four part-time employees are keeping their jobs. Each is expected to receive an average 3 percent salary hike.

The final article asks for approval to establish a Pine Tree Development Zone on more than 400 acres on the north side of the Androscoggin River. The state provides a variety of tax benefits to new businesses that meet certain criteria that locate within a Pine Tree Zone.

Derouche said acceptance of the Pine Tree Zone is critical to the future development of the town.

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