DEXTER – While they managed to reduce the proposed 2007-08 municipal budget to maintain the current mill rate, the Town Council on Tuesday was less successful with the tax limit.

The proposed municipal spending plan of $3,393,228 completed Tuesday exceeds the levy limit by about $84,000. It will, however, keep the mill rate at $21.40 per $1,000 of property valuation.

The municipal budget, along with the $178,105 county assessment and the $1,384,426 assessment for the operation of SAD 46 schools, will be voted on by the council at its July 12 meeting.

The council also is expected to vote to exceed the tax cap for the 2007-08 year rather than increase the tax limit for future years. A public hearing will be held before the vote.

“Keeping the mill rate stable was very important to the council,” Town Manager Judy Doore said Wednesday. “They also felt very strongly about not exceeding the tax levy limit, however, the emergency with the dam did not allow them to do that.”

The town must rebuild the failing Wassookeag Dam at a local cost of $334,300, of which $303,400 is contractor fees. The dam has severe leaks through an earthen dike around the concrete spillway wall and is slowly failing.

The council also was faced with an increase of $57,197 in solid waste costs. In past years, the Maine Solid Waste Association, of which Dexter is a member, has used surplus funds to offset increases. They can no longer do that and have assessed an increase to member towns.

At a budget workshop on Monday, the council reduced the budget by about $40,000 and on Tuesday, they found an additional $7,000 in cuts, mostly by reducing contributions to reserve accounts and eliminating new programs. Anything further would have involved positions, according to town officials.