MEXICO – Selectmen approved the annual town meeting warrant Wednesday night that includes a 4.8 percent budget increase.

Residents for the first time will vote on the budget by referendum instead at a traditional town meeting on June 12.

The proposed budget, at $2,340,276, is about $178,000 higher than this year’s budget. The amount that must be raised by property taxes, not yet determined, may also exceed the amount allowed under the state’s tax cap law.

Town Manager John Madigan said he won’t know how much that will be until he has a better handle on revenues and the amount of the town’s surplus, figures he won’t know until the end of June.

One of the warrant articles asks voters if they approve exceeding the state-imposed property tax levy of $1,170,201.

Twelve articles, with similar items grouped together, such as recreation, highways, social services, or public safety, make up the proposed budget. Three others ask for action on proposed ordinances governing signs, land use management, and if the town should continue adopting the budget through referendum or return to town meetings.

The proposed fiscal 2008 budget came in higher than this year’s because additional money was requested to conduct engineering work on some roads as well as for pay raises and benefit increases, and small increases in most other accounts, Madigan said.

Voters will also be asked to elect two selectmen and two representatives to the SAD 43 board.

A public informational meeting on the budget was set for 6:30 p.m. on May 9. A public hearing was set for 6:30 p.m. on May 23.

In other matters, the board agreed to participate in Operation Clean-Up for Oxford County. Inmates from the Oxford County jail will pick up garbage and other debris from the sides of roads in town in May. The prisoners get one day off of their sentence for each two days worked cleaning roadsides.

The board also conditionally approved a plan by Matt Gallant to hold a two-day event at the rear of the town office in and around the gazebo on May 25 and May 26. He said a flea market, craft fair, band and street dance are among events being planned. Proceeds will help a family a need.

He must return to the board on May 9 to provide additional details on steps he is taking to ensure safety at the site.