MEXICO — The Budget Committee and selectmen began deliberations on a 2011-12 municipal budget Wednesday night with an overview by Town Manager John Madigan.
Before any changes are made, he said the current year’s $2.6 million budget could rise by nearly $300,000, largely due to the first year’s payment on a road bond. But, he said, 2011 was the best year to take out such bonds because the federal government will pay a significant amount of the interest.
Voters last year approved borrowing up to $2.9 million over several years to repair and reconstruct some of the worst roads.
Last year’s municipal budget was 37 percent of the town’s total commitment of $7 million. Education accounted for just over 61 percent and Oxford County slightly more than 1 percent.
The 2010-11 tax rate is $21.50 per $1,000 valuation.
If nothing changes in the preliminary figure unveiled Wednesday, the tax rate could rise to $23.50 per $1,000 valuation.
The Budget Committee re-elected Bill Welch as chairman, then set up a series of budget meetings to review the 100-plus page budget line by line.
The committee and selectmen will meet at 6 p.m. March 24 and 29, and April 7 and 14. An additional meeting will be scheduled if necessary.
Madigan said he is not recommending salary increases this year for employees. Health insurance increases, which are expected to be high, aren’t known yet.
Another factor to be considered is the more than $130 million in valuation lost by neighboring Rumford due to cutbacks in the paper mill. He said all towns in the county must contribute to make up for the valuation loss in Rumford.
Other factors contributing to the final tax rate will be the town’s share of school taxes, which won’t be known until late June, and a loss in revenue sharing from the state. Also, two union contracts expire this year.
The Budget Committee voted to recommend charging 5.5 percent interest on unpaid taxes, rather than the 7 percent authorized by the state.
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