DIXFIELD — Selectmen unanimously approved a $2,066,860 municipal budget at a special meeting Monday night. It’s 5.85 percent more than this year’s figure of $1,952,568.

The spending plan includes a 5 percent salary increase for most employees, who will also be paying more for health insurance premiums. Town Manager Eugene Skibitsky said employees did not receive raises for two years.

The board agreed to reduce several reserve accounts, including those for road construction and the Fire Department. They also cut nearly $6,000 from the Police Department, $10,000 for training a new deputy treasurer, $6,000 from overtime, almost $12,000 from the highway department, $5,000 from grounds, and nearly $11,000 from social services.

Skibitsky said $58,000 more needs to be cut or revenue found to meet the requirements of LD 1, which limits the amount that can be raised through taxation.

He said residents will be asked to raise the amount of local taxes at town meeting. If voters turn that down, then town officials may take the funds from surplus, or more cuts could be made at town meeting.

“This budget was built and reviewed by many eyes. It’s a responsible budget that keeps town services on an even keel,” he said.

He also said that the amount of increase in taxes allowed by the state does not take into consideration higher costs for needed materials.

Skibitsky said the town has experienced virtually no growth compared with the cost of inflation, therefore driving up taxes to maintain the same level of supplies and services.

The current tax rate is $18 per $1,000 of assessed property value.

A special board meeting has been set for 5 p.m. May 7 to review the budget and town meeting warrant. The town meeting is set for 6 p.m. May 24 at Dirigo High School.

A public hearing on a draft wind turbine ordinance is scheduled May 9; a public hearing on a proposed sidewalk project is set for June 4. Both issues will be voted on at referendum June 12.