By SCOTT MERZBACH Staff Writer

A municipal budget that preserves existing positions and programs, covers the salaries in settled union contracts and ensures the War Memorial Pool will reopen was scheduled to be unveiled by the town manager Friday afternoon.

Town Manager John Musante was obligated under the town government act to unveil the fiscal 2013 budget by Jan. 16. The budget was expected to keep within the constraints of a 2.8 percent increase under guidelines issued by the Finance Committee.

This means that the budget, for the year beginning July 1, could increase by about $500,000 over this year's $19 million budget.

"It's overall a level services budget," Musante said. "It's responsive to the preliminary guidelines put out by the Finance Committee and I believe is also responsive to the overall guidelines suggested by the Select Board."

Musante has told the Select Board and Finance Committee that there will be sufficient money to keep staffing levels the same. This comes after four consecutive years of state aid reductions during which the town has eliminated about 25 positions.

Besides maintaining what already exists, the budget was to include sufficient money to cover the four settled contracts with the municipal unions representing firefighters, police officers, public works and clerical employees. All will receive 2 percent wage hikes July 1.

The budget was expected to have between $65,000 to $85,000 for the Leisure Services and Supplemental Education department to open the War Memorial Pool on Mattoon Street for the first time since 2008. The pool is to be renovated this winter and spring as part of a capital project that will be paid primarily with a state grant and will mean two full-size outdoor pools in town. The other is located at the Mill River Recreation Area in North Amherst.

The budget for the town clerk's office was to be $12,000 higher to pay for three town elections, including the state primary in September, the presidential election in November and the town election in April 2013.

The 2.8 percent increase in the budget was based on the budget growth forecast by Finance Director Sandy Pooler. Pooler's projections show a $1.72 million increase in net revenue, rising from $64.27 million to $65.99 million, a figure calculated through new local property tax revenues of $1 million, new taxable growth of $450,000, a 2 percent increase in state aid and local receipts

The budget remains tight because both the 2 percent increase in state aid and the $450,000 in new growth are lower than historical averages. But Musante said he is pleased fiscal 2013 appears to mark the end of four consecutive years of state aid reductions.

Andrew Steinberg, chairman of the Finance Committee, said his board will review the proposal and begin meeting with department heads to better understand what is proposed for each section of the budget before making recommendations to Town Meeting, which considers the budget in May.

"We want to make sure the policy proposal corresponds with the numbers recommended and that we feel comfortable recommending it to Town Meeting," Steinberg said.