DIXFIELD – Selectmen learned that a water rate increase can’t be imposed this quarter because the state Public Utilities Commission wants the town to set aside more time for hearings and complete the process.

They also reached a settlement with former public works director Tim Hansen for the town to pay $2,500 reimbursement for health insurance.

Town Manager Tom Richmond said the town is seeking a 29.9 percent water rate increase so water pipes can be replaced.

The board, acting as Water Department trustees, along with the Water Advisory Committee, is expected to meet with Maine Rural Water representative Steve Levy on Thursday to continue discussions.

Hansen lost his job in early May as the result of a reorganization of the public works department.

In other matters, Richmond said the board voted to hire R.H. Smith of Buxton to conduct auditing work for the town, water and sewer departments at a cost of $6,500.

The board also agreed to hire Hugh and Vawn Daley to mow the town’s nine cemeteries and the town office, library and gazebo park lawns at an hourly rate that will include both labor and equipment. Last year’s total was $8,000.