By Suzanne Hodgson

Staff Writer

Kennebunk’s proposed budget won’t increase next year and still has room for some much-needed town improvements.

Selectmen and the budget board unanimously voted to present the town a flat budget that includes funds for a new fire truck, improvements to Alfred Road and a new sidewalk for Port Road.

Both boards had strongly opposed raising the budget over last year’s $6.8 million figure.

But during a meeting Feb. 6, Kennebunk Fire Chief Steve Nichols said one of the town’s fire trucks won’t pass inspection next year. Nichols said its frame has significant rust damage, and a new truck will cost approximately $260,000.

After considering a number of scenarios – including raising the mil rate to cover the cost of a new truck – both boards agreed to reallocate $160,000 from next year’s budget. The purchase dashed hopes that the new budget would be $28,000 less than this year’s budget.

The fire truck will be funded from the town’s capital reserve fund and surplus money from fire hall equipment that cost less than budgeted

If the fire truck purchase costs less than anticipated, remaining funds will go back into the budget board’s capital reserve fund, said Town Manager Barry Tibbetts.

The town currently has a $1 million surplus from the fiscal year that ended June 30, 2009. Finance Director Joel Downs said an increase in ambulance revenue, and other improved revenues contributed to the surplus.

The surplus will be used to pay for two capital improvement projects, paving Alfred Road for $250,000 and sidewalk construction on Port Road for $232,100, according to budget documents compiled by Downs and Tibbetts.

Surplus money may also be used to rebuild a handicapped accessible ramp and front steps at the police station, buy the fire department portable radios, improve cable broadcast equipment and fill a $97,500 deficit in the Pay-As-You-Throw garbage collection program.

Kennebunk will hold a special Town Meeting at 7 p.m., Feb. 24 at the Edward C. Winston Auditorium to vote on six articles including, re-appropriating funds in the Heating Fuel Assistance Program, two ordinance changes and the Lower Village Tax Increment Financing district.

Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.