Town Manager Denise McNair presented her 2010-2011 budget proposal to the Town Council March 2. The document asks for a 5.7 percent increase on the $66.5 million 2009-2010 budget.

While last year’s budget was difficult, “this year is easily harder,” McNair said, explaining that all the easiest reductions had already been made. In addition, the same difficult economic conditions exist.

She asked the council that as they review the budget to “not cut lower than we can function at.”

Mayor Adam Salina said that as the Town Council’s finance committee reviewed the budget over the next several weeks “we hope to be able to whittle it down a bit.”

Among the factors that were budget drivers, McNair said revenues are flat and that expenses, salaries and operating costs are up. In addition, debt service has increased on projects that were already approved.

Conveyance tax income is down and the rate of tax collection is down for the first time in at least 15 years, McNair said.

Furthermore, “the interest on investments is the lowest I’ve seen it…dramatically lower than in past years,” McNair said. There has also been a drop in the fund balance which is typically used to balance the budget.

She said the Board of Education increase was included in her budget projection. The BOE has asked for a 1.9 percent increases. In addition, the school board is looking for large increases in its capital improvements appropriation. The board is asking for $619,150. The current appropriation is $150,000.

Budget hearings between the Town’ Council’s finance committee and department heads began March 3.