MEXICO – Residents OK’d all 31 articles at this year’s town meeting Monday night and caused the municipal budget to increase about 15 percent.

“The increases go down the line,” said Town Manager Joseph Derouche. He said the budget increase stems from ever-growing fuel costs, as well as a 12 to 15 percent increase in health, liability and vehicle insurance premiums.

Up about $205,000 from a year ago, the budget was also affected by unexpected overtime costs from the police department and a $15,000 increase for the addition of a fifth officer.

The added position is expected to decrease department overtime costs, expand coverage for the local area and free up Chief James Theriault for more investigative matters, Derouche said.

The 2004-05 budget came to $1,537,158. More money from fees, revenue sharing, excise tax and interest-bearing accounts are expected to make up the difference for the increase from last year’s operating budget of $1,332,531.

Residents also voted to accept an article that would authorize the town to enter into an agreement with the River Valley Growth Council and the Androscoggin Valley Council of Governments to develop a Pine Tree Development Zone on the north side of the Androscoggin River.

The zone would take more than 400 acres. Any business that meets certain criteria and chooses to develop in the designated area would receive a variety of tax benefits from the state.

“This will bring business to Mexico,” said Derouche. “Not only will it put us on the map, but it will create new business and more jobs.”

Derouche is confident that the zone would spur the economy and hopes that business owners already in the zone would make additions to their businesses.

With little interruption from the few residents in attendance, Moderator Calvin Lyons conducted the meeting in an hour and a half.