DIXFIELD – Town officials are taking a close look at finances as they develop the 2008-2009 municipal budget.

Selectmen learned Tuesday night that under LD 1, the state’s tax cap, the town can raise only $15,000 more in the upcoming budget from this year’s figure of $1,996,217, unless voters approve otherwise.

The municipal budget does not include Oxford County and SAD 21 taxes. This year’s tax rate is $29.50 per $1,000 of property valuation.

The job of studying financial statements and developing next year’s budget started Tuesday night and will continue every Monday night for the next few weeks, said Town Manager Tom Richmond, with a preliminary town meeting date in May.

Richmond said it’s going to be difficult keeping the municipal budget in line because of substantially higher fuel and heating costs, along with necessary building repairs and salary increases.

Selectmen are in negotiations with the union representative for the Public Works Department. The board will continue negotiations over the next few weeks, as well as work on the 2008-2009 budget.

Once a contract is agreed upon by the union and the town, Richmond said the nonunion employees will likely receive the same salary raises.

“We are looking everywhere to make cuts,” he said.