NORWAY — Voters will act on a 44-article warrant, including a $3.8 million town budget, Monday night when annual town meeting gets under way.

The meeting will begin at 7 p.m. in the Forum at the Oxford Hills Comprehensive High School.

The $3.8 million fiscal 2011 town budget is a 2.67 percent increase over last year’s budget and reflects no loss of jobs or employee hours.

The budget includes no pay raises for employees at this time. The police union is the only contract still under negotiations. According to a budget explanation letter from police Chief Rob Federico, the union originally asked for a 2 percent increase in salary but an alternate request reflects no increase.

Town Manager David Holt said that police union negotiations will continue next week, but as the proposal stands now any agreement will not affect the bottom line of the town’s operating budget for town meeting action.

“If changes are agreed to with the union that require more money, other things in the police budget will have to be cut to make up the difference,” said Holt.

The budget, which does not include the school or county budgets, shows a $68,000 increase. The amount is coincidentally about the same amount as the estimated loss to Norway in state revenue sharing, which is $65,000.

Holt said some departments, such as general administration, police, emergency management, Norway-Paris Solid Waste, cemeteries, highway, debt service, provider agencies, library, recreation and the capital budget either do not increase or go down in funding requests.

Holt said the budget includes an increase of $20,000 for hydrant rental and an increase of $23,000 in health insurance costs.

Holt told the board that a $1 million bond issue is being recommended by the roads committee to catch up on paving jobs. Holt said product prices are less now than was expected, and a bond issue is being retired this year that will keep costs lower.

The recommended road bond package recommendation includes paving on Dunn Road, Frost Hill, Crockett Ridge Road, Hemingway Road and Town Farm Road.

Also included in the package are Greenwood Road, Don Hunt Road and the Morse Road.

There will also be sidewalk, paving and drainage work done on Cottage Street and paving and drainage work on Winter and Green streets. The Dunn-Shedd roads intersection will also be grinded and paved if the money is approved.

“We’re all in agreement they did a good job holding it to the minimum that they could,” Ed Smith, chairman of this year’s Budget Committee, said after a budget hearing wrapped up earlier this spring. Smith said the committee recommended cutting another $12,000 from various line items.

In addition to Smith, members of the 13-member Budget Committee this year are Jim Boyce, Marion Denbow, George Gilman, Arthur Hill, Vern Maxfield, David Millett and Tony Morra. Also on the committee were Carroll Roth, Heidi Schellenger, Douglas Smith, Bob Walker and Wesley Wentworth.

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