The Damariscotta Board of Selectmen met with the budget committee for a third week March 23, hammering out details of the town budget for fiscal year 2017, which will be presented to voters at the June town meeting.

Town Manager Matt Lutkus, with input from the selectmen, the budget committee and town treasurer, crafts a draft budget each year. In order for each item on the budget to be presented to the voters, it must be approved by selectmen as well as the committee, which is a group of nine citizens serving three-year, staggered terms.

Several town agencies — the police, fire, cemetery, and highway departments, and others — were asked to appear to justify line items in their budgets. Also on hand during one of the meetings was County Commissioner Mary Trescot, who served as both a member of the budget committee and to justify the large portion of the town budget that is earmarked for county services.

The draft budget emerged from the process largely intact. Overall, the recommended budget increase for FY 2017 was 2.2 percent above the FY 2016 approved budget; the town budget does not include the AOS 93 school budget, which this year contains a 23.54 percent hike in salaries and student services, and a smaller increase of 5.39 percent for office expenses. Much of the increase at the schools is for mandated special services, such as special education, and cannot be cut.

Even with the small increase, the town’s share of the budget will not increase the mil rate for municipal services, which is 4.3 mils. The balance of the town’s mil rate of 17.1 mils last year, according to Lutkus, was for education and the county assessment. Lutkus said that he expects an increase in revenue sharing to offset the increase in town expenses.

The budget committee was looking for ways to cut spending, but found few opportunities. One line item that was eliminated entirely was the town’s contribution to the Fourth of July fireworks, only $2,500, as the majority of the cost is borne by business donations. Another was the $1,000 request by Newcastle for trolley services.

Selectman Jim Cosgrove told the budget committee that cutting small line items would not solve the taxation issue. “When people ask us about taxes, we have to start saying, fine, what do you want to cut? Fire services? Police services? Road repair? The schools? That’s where the money is going.”

Some portions of the budget increased, while others decreased. The police department saw an overall decrease to its budget, despite adding another officer, because the cost of health care fell, said Chief Roy Young. “We’re now fully staffed, but we are actually going to spend less in fiscal year 2017,” he said. The decrease is about 1.6 percent.

On the other hand, the highway department’s budget increased by more than 10 percent, largely owing to an increase in contracted services. County taxes are also estimated to go up by about 4 percent. The county had not yet finalized its own budget by the time of the Damariscotta finance meetings.

On the revenue side, Lutkus said he expects a decrease in property tax revenue, $1,920,896, but the decrease would be offset by revenue sharing from the state, a change to the liquor license fee structure, and expected increases in auto excise tax income, since car sales are up.

A few minutes into the March 23 session, the budget committee lost its quorum when two of the members had to leave. The committee will meet Wednesday, March 30 at 5:30 p.m. to finalize their vote on the remaining municipal budget items.