MEXICO – Selectmen and the Budget Committee overwhelmingly agreed Thursday night to eliminate one position from the Police Department.

“I am very disappointed,” Chief Jim Theriault said after presenting his budget.

In addition to eliminating the fifth police officer, the Budget Committee also took away a 3 percent salary increase for the chief and the four officers, and cut some equipment and other operational costs for the department.

Because the police officers are unionized, and the most recent contract calls for a 3 percent wage increase, the Police Department will have to find other ways to reduce costs in an effort to make up for the salary increase.

Selectmen recommended a $337,102 budget on a motion by Chairwoman Barbara Laramee, with Selectman George Byam as the sole dissenter.

The Budget Committee recommended $333,000 on a motion by Byron Ouellette.

Former Selectman Reggie Arsenault was the only Budget Committee member voting against the reduction.

Town Manager John Madigan and Theriault had developed a budget of $374,197, up 3 percent from 2008-09. He and Theriault cited an increase in nearly all incidents in the town during the past few years.

According to records, incidents jumped from 1,192 in 2004 to 1,947 in 2008.

“The need for police officers has doubled,” Madigan said. “Prior to having five officers, we overspent on overtime.”

Laramee said she wanted the town to try working with a four-member department, while Theriault said surveys taken during two consecutive years showed that a majority of people want to retain the level of service.

“We need to keep as tight a budget as we can,” Ouellette said.

Theriault will apply for two officers through the Office of Community Oriented Policing Services, which is a federal program under President Barack Obama’s economic stimulus package.

The grant, if approved, would pay salaries and benefits for entry-level police officers for three years. Communities receiving the money must agree to retain officers for an additional 12 months.

Theriault said he is applying for two to make up for the one lost at Thursday’s meeting, and the second for when Mexico and Dixfield merge departments.

Madigan said applying for two increases the chance that one will be funded.

Budget Committee member Betty Barrett said she opposes such grants.

“When it ends we wind up paying for it,” she said.