DOVER-FOXCROFT – Local selectmen on Monday endorsed a 2004-05 municipal budget that will require $1,780,073 to be raised through property taxes.

The amount represents an increase of $168,484 over this year. About half of that increase is reflected in the capital budget.

If the municipal budget is approved by voters at next month’s annual town meeting, that budget – together with school and county costs – is expected to take the mill rate from $19.86 to $20.37 per $1,000 in valuation.

“We’re trying to make sure we’re able to plan for the future as best we can and provide for this current year’s need and still try to minimize any increase we’d see in the tax rate,” Town Manager Jack Clukey said Tuesday.

Clukey said the capital budget includes lease-purchase payments on a firetruck and dump truck, as well as funds to be set aside for future needs.

“What we’ve also done is try to plan for the future to alleviate the need to borrow in the future,” he said. The capital funds also are earmarked for maintenance of municipal facilities.

Selectmen feel they have let the capital account slide to a point where funds would have to be borrowed to purchase equipment, according to Clukey.

This year, board members are planning in anticipation of equipment replacement to avoid raising the funds in one year or having to go into debt, he said.

The proposed municipal budget includes a 2 percent cost-of-living increase for all employees.