DIXFIELD – Selectmen voted 3-0 Monday night to stand against the Palesky tax-cap referendum.

The board also learned that talks have resumed on a proposal to merge Dixfield and Mexico police departments.

On the statewide tax-cap initiative, Chairman Eugene Skibitsky, Raymond “Tiny” Carlton and Tony Carter voted in favor of Carter’s motion to oppose the tax cap, but noted that property tax relief is needed.

Selectman Stephen Donahue abstained. Selectman Montell Kennedy was absent.

The vote came shortly after Town Manager Nanci Allard provided selectmen with a requested statement detailing how the initiative would affect Dixfield.

Dixfield’s estimated 2004 total revenue if the tax cap is passed would be $1,855,952, Allard said.

But, after paying $1,540,154 in total mandatory expenses for debt service, school and county tax, the town would have $315,798 to pay the remaining $1,789,992 for general administration, public safety, public works, health and human services, parks and recreation, library and other accounts.

That means, Allard said, the town would have to cut $1,474,194 from its current budget to make ends meet if voters statewide approve the Palesky tax cap.

“Palesky would be extremely disruptive and extremely hurtful to the town of Dixfield,” Skibitsky said in defending his vote.

Carter said that some type of tax reform is needed, but he wasn’t ready to do it all at once in the manner being proposed by the current initiative.

“I guess we’d be hard pressed to run the town like we’re doing without fees and severe cutbacks,” Skibitsky added.

In other business, Allard and Dixfield Police Chief Richard A. Pickett advised selectmen that talks begun last year to merge Dixfield and Mexico police departments have resumed.

Both Pickett and Allard said a recent meeting with Mexico Town Manager Joe Derouche and Mexico Police Chief James Theriault was “very productive.”

“It’s a start, and I thought it was a very good start,” Pickett said.

Allard asked selectmen to establish a committee to further investigate such a merger.

Should a merger happen, both towns would have to form a police commission, Pickett said.

Skibitsky told Allard to put the matter on the board’s next meeting agenda for discussion and possible action.