The Raymond Board of Selectmen has recommended a budget that will decrease spending 5.5 percent, yet raise the municipal contribution to the property tax rate 8 percent, thanks to a large decline in spending of surplus.

If approved by residents at the June 3 annual town meeting, the proposed budget would raise the municipal portion of the tax rate by 19 cents to $2.62 per $1,000 of valuation. Assuming the proposed school budget increase is not altered, Raymond’s property tax rate would increase about 40 cents, or 3.39 percent, increasing from $11.80 per $1,000 of valuation to $12.20, according to Raymond Town Manager Don Willard.

The proposed $4.14 million budget represents a $238,813 decline in annual spending. Yet because of a $435,850 decline in non-property tax revenues, the budget would require a $194,734 increase in property tax collection.

The fiscal 2015 budget used $428,500 from the town’s nearly $2.2 million surplus account for a series of one-time capital project expenditures, such as road improvements and the purchase of a new ambulance. The selectmen’s proposed budget would not spend any surplus funds, similar to the budgets passed in fiscal 2013 and fiscal 2014. The elimination of surplus spending is the main cause of the decline in non-property tax revenues.

The town is also projecting a 1.7 percent decrease in municipal revenue sharing, from $130,470 to $128,728, as well as a 4.1 percent increase in excise taxes, from $780,000 to $812,000.

In the proposed budget, major spending hikes include a 37.5 percent increase for the Raymond Village Library, a 16.6 percent increase in liability and vehicle insurance, a 5.16 percent increase in administrative costs, and a 4.88 percent increase in payroll costs for the fire/rescue department. The budget also includes a 12.4 percent increase for the code enforcement department for the hiring of an assistant seasonal code officer.

The $15,000 increase in library spending is some $5,000 lower than the amount requested by the library’s board’s co-president, Elissa Gifford, who requested $20,195 in her budget message to Raymond’s Town Manager Don Willard.

“We are a public library, funded for and largely by the Raymond townspeople,” she wrote. “Public demand for our services is growing exponentially and we want to better serve their requirements with the greatest efficiency and highest versatility. The people of Raymond are looking for us to be a community hub, a meeting place, a place of education possibilities and strong connections. To be as strong as they need us to be takes money.”

In February, the Raymond Fire and Rescue Department’s management team, which is set to receive a $17,021 payroll increase, requested higher pay rates in order to prevent a migration of staff to nearby towns.

“The biggest challenge faced in the fire and EMS service today is maintaining adequate staffing levels,” management wrote. “Because of expectations on members and their required level of training, volunteers are a thing of the past. Members are now part-time or full-time employees. We have found our current pay rates are not keeping our members available in town. Members are opting to go to Frye Island, Windham or surrounding towns for an average of $2 more per hour.”

On Feb. 23, Willard proposed a $4.37 million budget – $236,084 higher than the selectmen’s proposed budget. According to Joe Bruno, chairman of the Board of Selectmen, the manager’s proposed budget reflected the requests of the town’s department heads.

“We told all the department managers to go out and give us what you think you need. Everything you are thinking about, just put it in your budget,” Bruno said. “We whittled down from there.”

According to Willard, the projected increase in excise taxes from vehicle purchases reflects expectations of an improving economy.

“General municipal indicators, although not as robust as during the peak years, do appear to continue to be recovering from the 2007-09 recession,” Willard said. “Building-permit activity and related construction is growing and fewer business vacancies exist. Municipal revenue collections, which have remained consistent for the past several years, are strengthening, most notably in the area of motor vehicle excise collections. This is also a positive sign of an improving economy.”

Last year, Raymond voters approved a $4.38 million municipal budget that increased property taxes 2.67 percent, as well as an $885,000 capital improvement bond and a $50,000 appropriation toward a 347-acre community forest project along Conesca Road.