LIVERMORE FALLS — The town manager has proposed a municipal budget of nearly $2.2 million for the 2010-11 year — a reduction of $521,581 or 19 percent from the current budget.

It means reducing staff by three people, changes in the transfer station hours and the way recycling is down, among other cuts in some departments and accounts.

The overall reduction also includes the elimination of emergency dispatchers late last year and the money spent on two plow trucks.

The town has “great potential to lose $30 million of value this year,” Town Manager Jim Chaousis said. The 2010 state valuation for the town is $184 million, not including the estimated $30 million loss due to Wausau Paper’s Otis Mill closing in June.

The valuation loss is not expected to be recognized by the state until after the commitment of taxes this year, he said.

Selectmen and the Budget Committee will have a joint budget workshop with department heads at 6:30 p.m., Tuesday, Feb. 16, at the town office.

Among the staffing cuts he is recommending is elimination of one patrolman and the buildings and grounds custodian. The latter’s job would be done by contracting out the services. Chaousis also proposes not to fill a vacant highway position.

In addition, Chaousis said he is recommending the transfer station hours remain at three days a week. Previously it was open four-and-a-half days but was reduced last month after the transfer station attendant had emergency heart surgery.

The reduction in hours at the station would also reduce the hours of the attendant to 24 hours each week. That would bring the position to part-time status and it would not be eligible for health insurance and other benefits, Chaousis said.

With the reduction of staffing, it would bring the proposed insurance account down from $414,579 to $318,084, which is a 23 percent decrease from the current year, Chaousis said.

There is a proposed increase in the elected officials’ budget of an overall 7 percent to $77,181, which is due to more money for a new assessor’s contract.

There is also a proposed 1 percent increase in the administration budget bringing it to $178,992, representing an increase in the town manager’s salary and a decrease in legal fees.

Police Chief Ernest Steward Jr. has requested $424,297 for the Police Department, a $34,684 increase over the current year. That is due mostly to the addition of an administrative assistant because of the elimination of dispatch and including some items that were previously in the dispatch budget.

The town manager is recommending $373,428 for that budget.

He proposes eliminating a full-time patrolman and having the chief becoming part-time patrolman, part-time administrator, and eliminating training for new officers. He also recommends keeping the administrative assistant to do more administrative work, a position paid less than a patrolman.

Steward is recommending that if he had to reduce the budget by 5 percent, he would eliminate the reserve overlap position,, Chaousis said.

Chaousis’ proposal for the Fire Department budget reflects a 1 percent increase from $86,705 to $87,705, rather than the 16 percent increase requested.

Chaousis proposes that the Public Works Department budget be reduced by 4 percent. Highway Foreman Bill Nichols requested $360,025 for next year but Chaousis is recommending $340,025, which includes one less worker.

Municipal solid waste and transfer station budget is proposed to be reduced from $215,614 to $194,420, 10 percent less than current budget.

Besides the reduction in staffing hours and days the station is open, it also reflects the purchase of a compactor for recyclables and the recycling process going to single stream. Any saving from the change, would be used to buy a compactor for trash.

Chaousis is also recommending that nearly $141,000 in proposed capital improvements be eliminated for one year and revamp the process in 2012.

[email protected]