MEXICO – Selectmen will continue their review of finances Wednesday in order to make up for an estimated $300,000 used from town accounts for cash flow.

A preliminary audit for the fiscal year ending June 30, 2004, revealed the town had no surplus money. Nearly $200,000 in reserve accounts had been used for cash flow, and more than $103,000 from the undesignated account was used to cover overdrafts in recreation, police department and general assistance accounts, the report said.

Auditor Keel Hood of Fairfield advised selectmen in his report last October to decrease expenses and to replace the approximately $300,000 as soon as possible. He said towns the size of Mexico are expected to carry from $300,000 to $450,000 in undesignated funds.

The board decided last month to review all possible areas for reductions before voting on which items to cut or eliminate. A decision is expected Wednesday on whether to turn off about 70 street lights to cut costs.

Chairman Arthur Bordeau said last month that the town must save about $50,000 to ensure cash flow through June 30, the end of the current fiscal year.

In other budget-related business at the board meeting, several Budget Committee appointments will be made, and Rep. Randy Hotham, R-Dixfield, will report on school funding and tax reform.

Selectmen will also decide whether to hold a special election to fill the vacancy created by the resignation of former Selectman Monique Aniel. She resigned last month, citing her frustration with the town in not dealing with the financial situation more quickly.

Other agenda items include discussions and possible decisions on: whether to temporarily replace a Mexico police officer who is out on sick leave; where to send police cruisers for routine maintenance; formation of a team to negotiate with police and highway departments’ unions; and how to handle the disposal of several town-owned pieces of property.

Public hearings on a request to designate a handicapped-accessible parking spot on Mitchell Street and on a mobile home park license renewal application take place at 6:30 p.m.

After the public portion of the meeting, the board expects to discuss a police issue with officer Michael Buotte in a closed session.

The workshop begins at 5:30 p.m. in the Town Office, with a regular board meeting at 6:25 p.m.

What: Selectmen’s workshop , meeting

When: 5:30 p.m. Wednesday, Jan. 12

Where: Town Office