MEXICO – Pending voter approval of a proposed $3.36 million municipal budget at next month’s referendum, taxpayers should expect a jump in the tax rate.

That’s what Town Manager John Madigan told selectmen, the Budget Committee and a few residents at Wednesday night’s lengthy budget informational meeting during the regular board meeting.

Madigan said the 9.25 percent increase over last year’s $3.05 million budget could represent two or three mills. One mill raises $90,000 in Mexico, which now has a tax rate of $23.65 per $1,000 of valuation.

“When you look at three mills, half is the town and half is the school and, that’s a lot of money,” resident and SAD 43 Director Betty Barrett said.

Of the $3,368,055 proposed 2007-08 total town budget, Mexico’s SAD 43 assessment is $965,409. That’s a 14.07 percent increase over last year. The Oxford County assessment is $62,370, down a little more than 5 percent from last year.

Other than the $135,828 increase in the school assessment over last year, public works accounted for the other large spike with a $572,741 budget, up $74,360 over last year. Most of that 62.5-percent hike is due to $50,000 sought by selectmen for the road construction reserve account.

“We usually only budget $30,000 a year for road construction, but that’s not even close to being enough,” he said. There now is $100,000 in the reserve account. Attempts by selectmen in previous years to grow the account, were rejected by voters.

Madigan said the $50,000 is needed for engineering services for a major reconstruction of nearly mile-long Swett Avenue and Ledgeview Street, formerly Penley Hill.

“This is a significant project estimated at $1.3 million. This project alone will require 46 catch basins for stormwater control and that’s why the road didn’t hold up. An engineering study, to me, is money well spent,” Madigan said.

Of all town roads, Madigan and Selectman Reggie Arsenault both said Swett is in the worst shape.

“There’s dirt roads in the state that are in much better shape than Swett Avenue, much smoother and flatter,” Arsenault said.

Some of the $50,000 could also be used for a planning study of Mexico Avenue, which, Madigan said, needs major reconstruction. When asked about Backkingdom Road, Madigan said the estimated cost to reconstruct that is $2 million.

“These are tough choices, but all we can do is stretch the limited dollars we have as best we can,” he said.

“We build roads, but we don’t seem to look ahead to the future,” Budget Committee Chairman Byron Ouellette said. “We have to start looking at the future and start budgeting money even though it hurts. Pay it now or pay more later.”

Mexico won’t hold a town meeting this year because a majority of voters last year decided to try a secret ballot referendum. At the municipal building, a public hearing on the municipal budget will be at 6:30 p.m. Wednesday, May 23, followed by polling from 9 a.m. to 8 p.m. Tuesday, June 12.