MEXICO – Town Manager John Madigan unveiled a preliminary municipal budget Tuesday night which, if approved, would result in a 10 percent increase over last year.
He said the tentative $2 million municipal operating budget for 2005-2006 reflects realistic amounts for each department, unlike last year’s $1.8 million budget which he said contained a number of accounts that were underbudgeted.
“This is what I believe will provide the same services we’ve had,” he said Wednesday.
He said among the accounts that were underbudgeted were the accounts for solid waste disposal, general assistance, salaries and associated Social Security taxes, recreation and police.
“I’ve made corrections for underbudgeting,” he said, adding that all revenues are assumed to be the same as last year and without the homestead exemption.
When Mexico’s share of SAD 43 and Oxford County taxes are figured in, Madigan said the town’s overall tax liability would decrease by 5 percent, from $3.2 million to just over $3 million.
He said county taxes are down about 4 percent, from $62,815 to $60,415, and school taxes are expected to decrease by 26 percent, from $1.3 million in 2004-2005 to $971,000 for the upcoming fiscal year.
Mexico’s current tax rate is $28.50 per $1,000 valuation. With the preliminary figures for the town’s overall budget, that could decrease by $2 per $1,000 valuation.
With the first look at a proposed budget presented, the town’s Budget Committee and selectmen will now begin working their way through the budget line by line.
“This (municipal budget) is a starting point. Some lines may go up, some may go down,” he said.
Budget Committee meetings are set for 6 p.m. on March 22, March 31, and April 5, 7 and 12, and 6:30 p.m. March 23.
Townspeople will act on a proposed 2005-2006 municipal budget at the annual town meeting in June.
He said the recently completed audit showed that the town has no deficit, but neither does it have a surplus. Towns the size of Mexico are advised to have surpluses of about $300,000 to cover cash flow. Madigan said he believes it will take the town at least two or three years to build up a surplus.
In other matters from Tuesday’s board meeting, Madigan said selectmen, in an hour-long closed session, reviewed an initial proposal by the Highway Department’s union, Teamsters Local 340. The current three-year contract ends June 30. He said meetings have been set up for March 29 and April 6 to begin negotiations for a new contract. Five people are covered under Local 340.
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