RUMFORD – Eliminating thousands of dollars from capital accounts as well as cutting money from every municipal department resulted in a proposed fiscal 2009 budget that’s $17,000 higher than last year’s budget.

The depth of the cuts, however, could result in troubling consequences in coming years, Town Manager Jim Doar said.

“This is a bare bones budget. We’ve cut capital funds and the operating budget, something that could set us up for big trouble,” he said Wednesday afternoon as he unveiled the selectmen’s $7.3 million budget.

That figure does not include SAD 43 educational costs. And it does not rise above the tax cap set by LD 1. It does, however, keep all 65 municipal jobs intact, with 3 percent salary raises for everyone except firefighters.

While no one will be laid off, as Fire Department employees leave, the positions won’t be filled until 11 are left.

The department also took one of the biggest budget hits. Its budget went from about $900,000 this year to just under $800,000 for next. Public works lost about $75,000, the library budget was reduced by $17,000, as was the Parks Department. The Police Department budget remained flat, at just over $913,000.

Most cuts were made to capital projects.

“We’re starting to go down a slippery slope. We may have to borrow money to buy equipment,” Doar said.

The town has traditionally set money aside each year to buy firetrucks and road equipment, or to save for repairs such as to the library roof.

He said retaining capital accounts would have resulted in a $20 increase in property taxes for people owning homes valued at $85,000.

Also cut were several thousand dollars from the Greater Rumford Community Center and Black Mountain of Maine accounts.

The Finance Committee will have its chance to review the figures at a series of meetings scheduled for 6 p.m. April 14, 15, 16, and possibly on April 17, in the Municipal Auditorium.

Voters will have a chance to approve selectmen’s recommendations or Finance Committee recommendations at a referendum election on June 10.

A public hearing on the budget will be held at 6 p.m. May 22 in the Mountain Valley High School auditorium. The annual town meeting, set for June 2 at 7 p.m. at the high school, will deal with nonfunding items, and will also serve as another hearing on the budget.