DIXFIELD — Selectmen began work on a 2011-12 municipal budget Monday night that, if approved as is, would result in an 8 percent increase over this year.

Voters will have the final say at the annual town meeting set for 6 p.m. May 26 at Dirigo High School.

Town Manager Eugene Skibitsky said preliminary figures are $2,065,950, up from $1,888,332 plus another $23,000 that was taken from carryover funds. The current year’s municipal budget carried a $16.75 per $1,000 tax rate.

Accounting for the preliminary budget increase are higher costs for salaries and benefits, debt service and grounds work.

Skibitsky said he is proposing a 5 percent salary hike for nearly all employees, based on the negotiated contract with the employees in the town’s only union. That union represents the public works employees.

Also, he said municipal employees have not received a salary boost in two years.

Presenting his department’s budget request Monday night was police Chief Richard Pickett. Costs to fund 24/7 police coverage would jump about 4.5 percent from $305,167 in 2010-11 to $318,897 for 2011-12.

The higher budget is largely due to salary increases, and higher costs for health insurance premiums and workers’ compensation fees. Also, Pickett is recommending that his sergeant receive a higher percentage of increase because he has assumed greater responsibilities with no increase in pay.

Those duties began when Jeff Howe was promoted to sergeant nearly three years ago.

Pickett said he has also surveyed about a dozen other police departments in the region for the hourly rate paid to police sergeants. The range came in from $17.70 to $20.71 per hour. Howe earns just under $16 per hour.

Also, Pickett said Howe will assume more responsibility as Pickett prepares to retire in 2013.

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