PHILLIPS – Children’s laughter sounded Wednesday as they watched a marionette show on the lawn of the Phillips Public Library.

Most were accompanied by adults as Dan Grady showcased his puppets and music.

To look at the crowd no one would suspect town government was closed until at least Saturday, July 12, when a special town meeting is held. Voters rejected an article to exceed the tax levy at the town meeting Saturday and adjourned before any spending articles could be voted on.

Scott Croteau sat beside his son, Sebastien, 15 months, who watched the show from a stroller.

“I just found out about it yesterday,” Croteau of Phillips said of the town’s woes. “I see the transfer station is open today as usual. That was my concern.”

Avon has agreed to help Phillips residents by registering vehicles and boats and by employing a Phillips Transfer Station attendant to keep the station open. Avon normally pays Phillips, as does Madrid Township, to allow residents to use the Phillips transfer station, new Town Manager Lynn White said. Avon will receive a credit toward its use bill once Phillips is back on line.

“Well, the former town manager said it was going to happen,” Sue White of Phillips said. Former Town Manager Karen Olivieri told them if the article wasn’t passed, the town would cease operations, she said. “I can understand both sides of it. People didn’t have a choice. People didn’t get to see the budget ahead of time.”

She plans to attend the town meeting.

“It’s just too bad. I know the new town manager. It wasn’t fair to dump this on him. He’s only been manager two weeks,” White said. “I just hope they get it straightened out at the next town meeting.”

Chris Paul, also of Phillips, said in his opinion, he knew it was going to go down hill from the beginning.

“I just didn’t think it would go down hill the way it did,” Paul said. “If they raised the budget, I think we’d be better off because God knows we need the money.” People “just don’t know what’s going to happen,” he said.

Down Main Street at the 5K Pizza shop, owner Lori Berry said she’ll be at the town meeting.

“I think it’s very sad. I don’t think people were informed enough when they closed the meeting down,” Berry said. “I think they jumped the gun a little.”

Voters will be given information and explanations to help them understand the budget, White said.

He plans to conduct the tax levy article by written ballot as is required by state law.

It was rejected by a show of hands at Saturday’s town meeting.

David Douglass, an economist with the State Planning Office, said LD 1 does require a written ballot to exceed the tax levy for towns such as Phillips. Municipalities with a town council form of government vote on the article the same way they approve a budget, he said.

He believes the Phillips vote on the article was a violation of the law, but there is nothing in the law that says the state assessor will take action if a town doesn’t follow the written ballot rule, Douglass said.

Town officials still asked voters if they wanted to increase spending beyond the tax levy limit. The levy is determined statewide by a formula of each town using personal income and property value.

“If you’re going over the levy limit, you’re asking them to commit more resources to town services,” Douglass said.

Geoff Herman of the Maine Municipal Association said though the law does require a written ballot for those towns who hold meetings, it is a moot point at this time for Phillips. A written ballot could be just a piece of paper with a written “yes” or “no” on it at an open meeting, he said.

In his view, he said, the people effectively communicated to town officials that they didn’t want to exceed the limit, he said.

He doesn’t consider the way the vote was handled illegal, he said; it’s just a point of order.