EAGLE LAKE – Resignations of two selectmen and insurance increases of up to 200 percent in some accounts are prompting a special election and town meeting Jan. 10.

Norman Martin, a selectman in the final year of his first three-year term, and Timothy Saucier, in the third month of his second term in office, both resigned at the end of the monthly Board of Selectmen’s meeting in September.

Martin’s term was to end June 30. His successor will be in office about six months before the next election comes around in June. Saucier’s replacement will be in office until June 30, 2005. Saucier was re-elected to a second term in municipal elections last June.

On Friday, Martin said his service as selectman was “something in the past.”

“It doesn’t do anyone any good to dwell on what happened,” he said. “I just don’t want to be part of [the board] anymore.”

Saucier could not be reached Friday.

In September, it was reported that the two men resigned after they were advised that a vote taken at the previous meeting was null and void.

Town Manager James Nadeau had said the vote was for an across-the-board salary increase for the town’s three employees.

Martin and Saucier were both in favor of the increases. They were told that the vote on an increase, 2 in favor, 1 against, and 1 abstention, failed because it did not achieve a necessary three-vote majority.

The special election will be held from 10 a.m. to 6:30 p.m. Friday, Jan. 10. At 7 p.m., the special town meeting will be held at the Eagle Lake Elementary School gymnasium.

Nadeau said Friday that the town needs to raise another $7,500 to fully fund the town’s insurance program.

“The 9-11 incident really killed us when it comes to insurance,” Nadeau said Friday. “We really got hit bad with increases, especially on liability insurance.”

Before the annual town meeting last June, Nadeau had prepared his budget anticipating a 15 percent increase in insurance costs for the year.

He proposed an expenditure of $34,300, and residents approved the expenditure. The rates were increased in all areas, after the town meeting. Some of the contracts were due in July and some in December.

“Liability insurance went up drastically,” he said. “We quickly found out that the 15 percent increase we had anticipated would not cover it.”

The prior liability coverage cost the town $1,400 and that has gone up to more than $4,000, an increase of more than 200 percent. Nadeau said health insurance is another double-digit increase.

He said vehicle insurance also increased, as did insurance coverage for the Fire Department.

Nadeau said another $7,500 should cover insurance bills.

The town manager said the town would have to raise another 20 percent, above the 15 percent increase anticipated last June.