DIXFIELD – Selectmen continued their struggle to develop a fiscal 2009 town budget Monday night that allows an increase of only $15,000 over the amount raised during this fiscal year.

With only the administrative/executive department scrutinized, already $9,000 of that $15,000 is spoken for.

Salary increases and insurance costs for all town employees will likely take up the $15,000 allowed by the state’s tax cap requirement, Town Manager Tom Richmond said.

“The reserve account is the only place in the budget to adjust,” he said, although no reserves, which set aside funds for the purchase of large items such as public works and fire department equipment, were touched Monday night.

When voters attend their annual town meeting in mid-May, they will see what looks like a huge increase in each department, although that really won’t be the case. While most departmental costs will likely rise, they won’t increase by the numbers that will appear on the town warrant.

That’s because selectmen decided to include the costs for social security, health insurance, workers’ compensation, and retirement contributions in the budgets for each department. In the past, accounts separate from the rest of the costs to operate a department had been established.

Now, according to selectmen, the true cost for running a department can be seen.

In the executive department, including those items automatically increases the bottom line by $38,000. That, together with at least $9,000 more for raises and other costs brings the total to more than $266,000, up from just under $220,000 for fiscal 2008.

Town office employees will receive a 3 percent wage increase, as will most other employees, except selectmen, who agreed to keep their stipends the same at $6,300. That figure is for the five selectmen.

The board is waiting to settle negotiations with the town’s only union. It represents the public works employees.

The town operates on a $1,996,217 municipal budget, which was funded through a $29.50 per $1,000 valuation tax rate. Next year’s tax rate depends on the budget as well as property values, which are being adjusted.

Richmond is also concerned about the expected total amount of over budget spending by the public works department resulting from handling so many snowstorms this year.

Already, that cost is more than $5,000 over budget.

Richmond isn’t sure when a special town meeting will be called to ask for voter approval to move funds from the undesignated account into the public works account.

Budget studies will continue on March 3, 10 and 17. Each meeting is set to begin at 5 p.m. The board expects to take up proposed fire, police, and library budgets on March 3.