NORWAY – Town Manager David Holt told selectmen Thursday night that he will present a fiscal 2010 budget April 2 that shows a net increase of less than 5 percent over this year’s $4 million spending package.

“I probably won’t recommend any pay raises, but this was a preference to cuts in staff,” he said. “I don’t think we’ll have to do layoffs.”

Holt recently surveyed town employees regarding where budget reductions would be less painful.

He said an increase in expenses was incurred primarily because of lost revenue and higher fixed costs, including water hydrant rentals. Hydrant rental fees generally only increase every five or six years. Holt said the timing is such that this coming year the fee would be raised.

Revenue losses include motor vehicle excise taxes, Holt said recently. Based on fiscal 2009 numbers, he projects a loss of about $60,000 for next year. He said last month that he based that figure on fiscal 2009’s budget estimate of $585,000 in excise taxes being collected when only $330,592 was actually collected.

Because fewer new cars are being sold, Holt said the higher excise tax paid on the first year of a new car purchase is not being collected as often.

People who have said they want to be on the Budget Committee have been invited to the April 2 meeting with selectmen. At that time they will be appointed. New members are sought for the committee.