MEXICO — Selectmen on Tuesday struggled to reassess the town’s recreation and undesignated fund budgets, both of which voters rejected on June 12.

When Mexico residents stepped into the polls earlier this month, they voted 209-158 against the town’s $144,101 recreation budget, which represented a 54 percent increase over the current budget.

Residents also voted 187-160 against the proposed unclassified budget of $64,751. That budget would have been a 3.4 percent increase over the current year’s budget.

The proposed increase in the recreation budget would have funded building repairs, increasing utility costs, and a change in Recreation Director Wayne Sevigny’s job to full-time status, nearly tripling his salary to approximately $30,000.

On Tuesday, several residents told selectmen that the recreation director’s salary increase was the likely cause of the ‘no’ vote.

“After six months he goes from $10,000 to $30,000,” Gary Coffin said. “You got people that have degrees that have taught here for years and years and years and that would have been nice after six months they could have gone to the superintendent and said ‘I would like a $20,000 raise.’ He would have laughed at them.”

Several selectmen defended the salary increase, arguing that Sevigny has brought new life to the recreation department. Town Manager John Madigan noted that during his first six months on the job, Sevigny secured more than $10,000 in grant money, installed two new dugouts and brought in revenue through basketball, soccer and Little League.

Selectman Byron Oullette said he approved Sevigny’s salary increase because he felt the town was getting its money’s worth. Oullette also pointed out that the town had regularly paid $30,000 for less active recreation directors before budget cuts last year.

“All of a sudden we hire somebody that’s getting things done, has turned this recreation department into something that’s creating, and no one wants to pay that similar amount of money,” Oullette said.

Selectman George Byam suggested officials start over and come up with a lower recreation budget.

“I’d like to propose the selectmen get together with the director and the rec committee and see just what it would take to keep our present energetic director on board,” Byam said.

A town ordinance allows residents to take one more vote on articles that did not pass at the June 12 referendum. A public hearing would be held, followed by a town meeting and secret ballot, Madigan said. Selectmen also have the option of sticking with the current year’s recreation and unclassified budget figures.

Late Tuesday evening, selectmen voted to revert to the current year’s unclassified budget. Selectmen also voted to renegotiate the recreation budget with the Budget Committee. That renegotiated budget may be presented for a public vote at a special August town meeting, if selectmen choose not to revert to the current year’s recreation budget.

The town must arrive at a final budget by the end of August, so that the tax rate can be set and bills sent to taxpayers.