MEXICO — Residents will have a chance to act on a proposed $2.61 million municipal budget when they go to the polls on Tuesday.

The selectmen-recommended figure is about 6.2 percent higher than the current year’s adopted budget of $2.46 million; however, Town Manager John Madigan said the actual increase is really 3.7 percent because a federal grant covers the $60,000 cost of maintaining a fifth police officer.

This is the second year of the three-year grant, he said.

Residents will vote on 15 articles that together total the entire municipal budget.

Among the changes is a proposed increase of about $9,000 for the costs of operating the municipal government, from $327,754 for fiscal year 2009-10 to $336,542, as a result of a 3 percent employee raise, $20,000 more for the fire department reserve fund and $15,000 more for fire hydrants.

Also experiencing an increase is the cost of the town’s share of Med-Care Ambulance Service fees, and a $35,000 jump in debt service because of bonds for road construction.

Remaining relatively flat are costs for the solid waste account, public works department, recreation and the public library.

Reduced this year are contributions to a variety of social service agencies, from last year’s nearly $11,000 to this year’s proposed figure of just under $4,000, and a reduction in economic development funding from $13,500 in 2009-10 to $7,000 proposed for this year.

Townspeople will also have a chance to decide whether they want to continue the adoption of a municipal budget through referendum, or to return to the traditional town meeting format. This is the town’s fourth year voting at referendum on a budget.

Madigan said with school and county taxes added in, he expects an increase of about one mill in the property tax rate. The current rate is $19.85 per $1,000 valuation.

It could have been much worse, though, because of the loss of state revenue sharing. He said the mild winter resulted in fewer dollars needed for snow removal and heating town buildings. Those dollars will go into the surplus account. How much to take from the surplus account to apply against the tax liability will be determined later in the summer.

If any of the 15 articles are defeated at referendum, Madigan said the selectmen will decide whether to hold a special town meeting for another vote. In the interim, the budget figure from 2009-10 will be used for that particular account.

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