DIXFIELD – Auditor Ron Smith said the town’s finances are in good shape, but some improvements are needed with town office organization and communication.

Smith, of Buxton, and his assistant, Vernice Evasius, appeared before selectmen Monday night to discuss the annual audit and describe changes that must be made to the town’s financial operations.

“The new town manager coming in has a background in finance. That will be a big help,” said Smith of Eugene Skibitsky. Skibitsky has been a financial manager at Western Maine Transportation for years.

Smith said the town has not defined a finance manager, and too little communication exists between the women who work in the office and the town manager. Each person also needs to know their responsibilities, he said.

He said the amount of undesignated funds is well within the requirements for a town with an annual budget of $3.5 million. The town has $535,000. The range for a town the size of Dixfield is between $350,000 and $700,000. The undesignated amount would pay the town’s bills for about 60 days, Smith said.

Evasius will provide training to the employees soon after Skibitsky begins work on Oct. 1, then will return a couple of months later to check on progress.

In other matters on Monday, fire Chief Scott Dennett updated the board on regionalization talks he has had with Chief Bill Hussey of neighboring Peru.

“We’re still batting things around, but we’re not on the verge of entering into an agreement,” he said.

He said times are difficult for all fire departments and each must draw on others more often than in the past. He cited the increased amount of training and safety standards that departments must follow as reasons for greater mutual assistance.

Selectman Brad Dyer asked whether Dennett had talked with other area fire chiefs, and although Dennett said regionalizing fire departments may be an area organization at some point, right now he is looking to Peru.

“Strategically, it makes sense (to go with Peru), before a valleywide thing,” he said.

Also on Monday, police Chief Richard Pickett said he has been patrolling Common Road frequently in an effort to slow motorists who take the road instead of Route 2. The highway is under construction, which has resulted in a major increase in traffic on Common Road.

He said traffic has slowed and suggested that the board may want to change the entire road to 35 mph. Now, the east end has a 35 mph speed limit and the west end is posted at 45 mph.

“If the town chose to do so, it could request that the Department of Transportation do a survey, then possibly dropping it down to 35 mph,” he said.

The board made no decisions on whether to seek the lower speed limit.