MEXICO – Selectmen on Wednesday delayed further discussion on the municipal deficit until after they attend a meeting with the town’s auditor next week.

Two special workshops to discuss town finances and possible places to reduce costs were scheduled for 6:30 p.m. on Dec. 16 and Dec. 17 in the Calvin Lyons Hall of the town office.

Board Chairman Arthur Bordeau said that although the public is invited to attend, public comment won’t be allowed on either of those nights until after the board has completed its work.

Voting on whatever issues are discussed will be made at a later special board meeting.

On Dec. 14, Mexico selectmen, along with town officials from Dixfield and Bethel, are expected to attend a auditing workshop from 4 to 8 p.m. at Mexico’s town office. At that time, the auditor for all three towns, Keel Hood of Fairfield, is expected to outline changes in the way towns should maintain their financial records.

At least some Mexico selectmen are planning to attend a Maine Municipal Association budgeting workshop in Augusta on Dec. 29, as well.

A preliminary audit of the town’s books in October showed a deficit of about $300,000, including nearly $200,000 in reserve money that has been used for municipal cash flow. The remainder is the result of a variety of overages.

At the Dec. 16 and Dec. 17 meetings, the board will review options given by the town lawyer on the use of reserve funds for cash flow, and will outline areas where possible cost cuts or reductions can be made.

Also on Wednesday, selectmen approved applying for several state and federal grants. These include a state grant to study or put into action regionalization efforts, and a Community Gateway Grant aimed at promoting the town.

Town Manager Joseph Derouche also proposed, and selectmen approved, applying for a Federal Emergency Management Agency Flood Mitigation Grant. The grant, if approved, would help the town move or acquire some of the homes in the flood plain. A public hearing on the grant application was set for 6:30 p.m. Wednesday, Dec. 22. The Planning Board will likely hold a special meeting before the public hearing to discuss the grant because it will likely play a significant role in its implementation.

The board also awarded the contract for a 1996 former police cruiser to George Turner, Peru, at a cost of $478.