PHILLIPS – Voters gathered Saturday for the first of two town meetings this year to approve a five-month town- and school-spending package of $670,879.

Of the $670,879, $407,570 is related to the town and $263,309 for the share of SAD 58’s school budget.

Because Phillips is shifting its fiscal year – to run from July 1 to June 30, 2009 – a second annual town meeting will be held in June to raise money to cover 12 months. Saturday’s voting takes care of raising money to cover the five months from Feb. 1 to June 30 of this year.

The shift, however, caused plenty of confusion among the more than 80 voters who repeatedly asked selectmen and Town Manager Karen Olivieri to clarify nearly every article for much of the 36-article warrant.

“Explanations this year were more about process than monetary matters,” Olivieri said after the 3-hour meeting inside the gymnasium at the Phillips Elementary School off Route 4. “I think (the meeting) went great considering the changes.”

Several voters, however, said they came to pare the budget. A few wanted to vote it down altogether.

At one point, two hours into the meeting when voters were asked to raise and appropriate $6,381 for the planning budget, resident Lauri Sibulkin attempted to gain support for cuts.

“If we want to stem the hemorrhage, these are the places where we’ve got to cut the money,” he said.

The planning budget covers wages for a code enforcement officer, local plumbing inspector, Planning Board, legal fees, travel, training, etc.

However, Olivieri quickly countered Sibulkin.

“This isn’t where you need to cut. The town needs to have a code enforcement officer, Planning Board and plumbing inspector … This is the backbone of the town,” she said.

Olivieri stifled similar attempts earlier during discussion on Article 6, which sought voter approval to increase the property tax levy limit of $256,076 should the approved municipal budget cause a greater tax commitment than that of the levy limit.

After explaining that the amount was based on five months, Olivieri said, “You can vote ‘no’ to every article, but if you vote every article down, you have a zero budget and the town ceases to function. If you don’t vote for this, this ($256,076) will be the municipal budget.”

Ultimately, voters OK’d every article that required their approval.

“In this economic climate, people were worried … Karen did a super job with the budget and explaining the budget,” Selectmen Chairman Eric Kinney said after the meeting.

Voters increased by $10,000 the recommended Highway Department budget of $159,913 to $169,913 per Selectman Jonathan Wilbur Sr.’s amendment.

Explaining Article 18, Olivieri said the amount was needed to cover 1,000 yards of sand and salt the town bought in February to get through the winter. Wilbur said the extra $10,000 was needed to help cover an anticipated $12,000 in diesel fuel costs since February.

Voters approved raising $20,000 to buy a wood-pellet furnace and silo for the Public Works building, which houses the Phillips Fire Department, ambulance and town Highway Department. They also agreed to raise $10,000 to cover maintenance and repairs for the town’s 13 cemeteries.

In municipal elections following nominations from the floor, Selectman Wilbur won re-election to a three-year term over Howard Small by a vote of 42 to 38. Alan Morse was chosen as the town’s SAD 58 director and Town Clerk and Registrar of Voters Evelyn Wilbur was re-elected.