NEW GLOUCESTER — Town Manager Paul First has advised the Budget Committee that the municipal budget for 2017-18 is particularly challenging.

There are increases in operating expenses across the board, the Homestead Exemption has been raised by $5,000 and revenues are not expected to increase, he said in a memo to the committee.

The 11-member committee told the Board of Selectmen on Wednesday evening that it is reviewing the board’s $4.32 million spending proposal, which is 6 percent more than last year. It includes the town’s assessment of $342,934 to Cumberland County.

School Administrative District 15 will finalize its budget in March.   

First said the town’s total taxable value for real estate and personal property is expected to increase by approximately $2.5 million because of new construction.

Requests from capital reserves total $310,780 to pay for Fire Department air tanks, public works equipment, bridge construction, library repairs, fire rescue equipment and replacement of a fire/rescue utility truck.

The committee recommends $16,960 for selectmen; $301,186 for administration and $49,650 for human services; $64,351 for code enforcement; $425,255 for insurance; $187,600 for benefits; and $179,650 for debt service.

The committee will meet Feb. 13, 15 and 23 to complete its reviews and hold a public hearing March 1.

Members are Chairman George Colby, Vice Chairman Tim Joy, Joe Bean, Jean Couturier, Jeff Hamilton Sr., Rosemary Kulow, Barbra Thompson, Cleo Werner, Karen Gilles, John Randall and Tamilyn Wayboer.

Selectmen will begin final budget reviews March 6 before approving warrant articles by April 3 for the annual town meeting in May.