HOLDEN – Nearly 200 residents showed up at Wednesday’s annual town meeting and, after asking several questions, resoundingly defeated two proposals to build a new public safety building.

The two proposals differed only in the number of years the town would have borrowed the money.

“I’m certainly disappointed, but it’s democracy in action,” Jim Ellis, public safety director, said after the meeting. “Unfortunately, the problem doesn’t go away and it gets larger every year.”

The fire and police departments, who respond to more than 2,000 emergency calls annually, now share cramped space in the basement of the town office that is not up to Americans with Disabilities Act and other codes.

Residents liked the proposal to construct a new four-bay firehouse, something that has been discussed for more than a decade, but didn’t like the $1.8 million cost, Ellis said.

Residents voted 139 to 53 to defeat the project with a 20-year loan, and voted 131 to 62 against the project with a 30-year borrowing term.

“We will not be proceeding with this project,” Chairwoman Ellen Campbell said after a resident asked if the board would go forward with the project even though voters defeated it.

Town leaders did not present the project without investigating other options first, including an addition, renovations and regionalization, Councilor John Bryant said before the vote was taken.

Holden has outgrown the current facility, built in 1975, Ellis said.

The meeting crowd was the largest in more than 25 years, longtime moderator Ed David said to open the meeting held at Holden Elementary School.

“Since about 1978 there hasn’t been this many people at a town meeting,” he said.

After questions on the proposed building, several members of the audience left the building.

During the meeting, residents approved a nearly $1.9 million municipal budget for 2006-07, which is an increase of about $33,000 over this year.

The draft budget approved by residents included:

. $448,208 for general government, a decrease of $3,552 from last year.

. $237,193 for administration, an increase of $10,613.

. $322,150 for public safety, an increase of $4,701.

. $436,942 for public works, a decrease of $1,650.

. $47,300 for municipal properties, an increase of $6,800.

. $158,814 for sanitation, an increase of $9,289.

. $100,354 for health and welfare, an increase of $804.

. $148,753 for debt service, an increase of $6,488.

Residents also set aside $100,000 in funds for the I-395/Route 9 connector, something they have done for the past two years, made three zoning changes, and added the town’s Web site as an area where items for sale can be listed.