Selectman reviewed for the first time the proposed $33 million operating budget that covers the cost of leasing five new vehicles, roadwork and bridgework in the 2009 fiscal year.

The proposed budget, reviewed Monday, Aug. 25, comes in at 5.22 percent higher than last year. The tax increase will be 13 cents per $1,000 assessed property valuation, a 2.79 percent across the board increase on the tax rate over the 2008 budget.

Sistare is asking for a 3.77 percent increase in the general fund, up from 3.42 percent in 2008. About 60 percent of the approximately $27 million general fund will go toward public safety, which includes the purchase of a fire engine and fire rescue vehicle. The town is also looking to purchase a vacuum truck, sweeper truck and a dump truck. By leasing all five vehicles, Sistare is hoping to shave 24 cents off the tax rate over the course of 2009.

Finance Director Jane Savastano also advised that the fire rescue vehicles will require another $15,000 in additional costs for equipment.

At just over $5 million, proposed work on the roads around Canobie Lake, including sewer and water installation as well as drainage and road work, is the most expensive item on the proposed budget. The second phase of improvements will spread over two years as a proposed bond. Without bonding, Sistare estimates the work would cost taxpayers 39 cents on the tax rate, and it would more than double water and sewer rates in town.

Also included in the budget is a second bond for three of the red-listed bridges in town – the Cluff Crossing, Lawrence Road and Pelham Road bridges – at a total of $1,991,000, but with no financial impact for the town until 2010. If the bridgework were to go ahead without being bonded, Sistare estimates taxpayers would feel a 43-cent increase.

Funding has also been set aside for a new $300,000 computer system for the Police Department, road improvement and drainage development, as well as engineering costs for the replacement of the North Main Street bridge in the coming year.

Savastano pointed to an annual savings of $225,000 in personnel changes, a figure reflected in the 2009 budget and due to what Sistare called a “pseudohiring freeze” that left town positions unfilled as they opened up over the past year.

Sistare has also proposed the town re-establish the recreation revolving fund at a sum of $100,000, which he said will allow recreation director Chris Dillon more flexibility to run programs in the future.