MEXICO — Selectmen set a referendum for Aug. 30 for residents to act on a Recreation Department budget for 2012-13.

Town Manager John Madigan said the board agreed at Tuesday’s selectmen’s meeting to recommend $114,842, which is down from the original request of just over $144,000.

Residents turned down that request in June.

He said a joint meeting of the board and the Budget Committee earlier this month arrived at the following cuts:

* Recreation building, from $64,689 to $60,819 by cutting custodial help and about $2,100 from the fuel account.

* Recreation programs, reducing the proposed salary for the director from $30,000 to $23,660.

* Recreation reserves, from $14,000 to $6,000.

* Recreation miscellaneous, reductions of $500 from snack bar supplies, $7,000 from new equipment, and $1,000 from roller skates and repairs.

Madigan said a public hearing on the budget will be held at 6 p.m. Aug. 16 at the town hall.

Voting will take place from 9 a.m. to 6 p.m. Thursday, Aug. 30, at the town hall.

If the recreation budget is approved, the total for municipal operations, school costs and Oxford County taxes will be $4,399,859. Madigan said much of the increase can be attributed to a hike in school taxes of $127,000 while the town lost $100,000 in state aid. The new tax rate will likely be set next month. The current rate is $23 per $1,000 of assessed property value. He said the rate could increase by up to $2 per $1,000 valuation.

In other matters at Tuesday’s meeting, the board agreed to buy a property at 22 Alder St. for $23,500. Madigan said owning the property will avoid having to erect a retaining wall, which he said would cost about $50,000. Funds come from the town’s road reserve account.

Also, the town accepted use of a 400-gallon water tank trailer for the Mexico Fire Department from the Maine Forest Service. Madigan said the tank will likely be housed at the Byron fire station.

The town’s annual Night of Appreciation will be held Oct. 18 at the recreation building.