HERMON – When town and school officials sat down to draft the 2008-2009 budget, they had one common goal – tax rate stability.

The proposed 2008-2009 school and municipal budget came in at $17.5 million, a nearly $1.3 million increase. Despite the 7.9 percent increase, residents shouldn’t expect major fluctuations in tax bills, since the revenues and town’s valuation also rose, said Town Manager Clint Deschene. The mill rate is expected to settle around 11.1, or $11.10 per $1,000 in valuation, he said.

Financing the school system accounted for approximately $13.1 million of the total budget, said Superintendent Patricia Duran. The school committee created a consolidation reserve account of $550,000 to help level costs and prepare for unanticipated expenses as state consolidation nears.

Personnel and fuel costs account for the largest increases for this year’s budget, Duran said. Heating oil increased by 78 percent since the school committee began budget discussions in January, she said. The school system will add two special education teachers, one at the elementary and one at the high school, and the middle school will gain a part-time reading teacher, and a science teacher will be added to the high school staff. These changes were prompted by increased student demand, Duran said. A sixth-grade teacher position will be eliminated.

The $4.5 million municipal budget increased nearly $316,000 when compared to last year, Deschene said. Fuel and diesel prices account for noteworthy spikes in the Fire Department and Public Works budgets. The town’s road construction budget alone increased by almost $165,000, Deschene said. Road construction or paving is expected on Fuller Road, North Street, Vafiades Avenue, Klatt Road, Hilcrest Street, Evergreen Drive and several other roads are being considered, he said.

An additional $21,500 will go to the Hermon Volunteer Rescue & First Aid Inc. Amid discussions of contracting with the local ambulance service, town councilors voted to increase the annual stipend offered to the organization. A committee will meet in June to discuss establishing a contract between the town and rescue squad, or creating a municipally-run rescue service.

Last year, the town included $315,500 in the municipal budget to fund school projects, Deschene said. The money was used to pave the high school entrance, add outdoor lighting to the elementary school, update athletic fields and several other projects. Without the need to fund school projects, the town can focus on the town’s roads.

The school’s district budget meeting will be held at 7 p.m. Thursday, at the middle school. Residents will be able to vote on the 19 school warrant articles individually. Then the final school budget amount will be confirmed by voters who make it to the polls on June 10.

Polls will be open from 8 a.m. to 8 p.m. Tuesday, June 10, at the Hermon Elementary School gymnasium. In addition to confirming the school budget, voters on June 10 will elect two new council members and a new school committee member. Three residents, Robin Hall, Jeanne Jacques and Louis “Buzzy” LaChance are running for two three-year terms on the council. Ralph Carr is running unopposed for the lone school committee position.

Residents will also vote on June 10 on whether to increase the town’s debt service by $105,000 and dedicate $70,000 in revenue to fund a 10-year loan to improve Billings Road from Route 2 to the Fuller Road intersection. Even if the article passes, there are many more votes and state approvals needed before the project comes to fruition, Deschene cautioned.

After the election, Hermon’s annual town meeting will be held at 6:30 p.m. Thursday, June 12, at the Hermon High School auditorium.

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