PERU — Fewer revenue sharing and excise tax dollars and necessary road work have resulted in a selectmen-approved, proposed municipal budget that is 18 percent higher than the current year’s.

Residents will have a chance to vote on the $798,408 proposal by deciding on 32 warrant articles during the June 8 referendum election.

Board Chairman Jim Pulsifer said the 2009-10 municipal budget is $667,439.

If all articles are approved, the tax rate could go up by 1 to 1.5 mills, contingent upon the town’s share of Western Foothills Regional School Unit 10 taxes. The town paid $1.38 million for the current school year. About half of the $210,000 credited to the town from carryover from the former SAD 21 school taxes will be applied to the 2010-11 bill. The second half will be applied next year.

The current tax rate is $16.20 per $1,000 valuation. One mill is valued at $102,000, Pulsifer said.

Town employees will not receive raises this year in an attempt to keep the tax liability down. A proposal to add $5,000 for an employee investment program is added to the budget, said Treasurer Vera Parent.

Adding $75,000 to the road maintenance and construction account is necessary to maintain town roads, Pulsifer said. This year’s plan is to finish a section of the Gammon Road.

Town officials hope to add $70,000 to $75,000 per year to the road account during the next few years to repair the East Shore Road around Worthley Pond, Pulsifer said.

Other increases include a small rise in cemetery maintenance and a substantial rise in insurance costs.

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