PHILLIPS — Residents at Town Meeting on Thursday will be asked to consider a $1.3 million budget for 2016-2017.

The meeting is scheduled to begin at 6 p.m. at the Phillips Area Community Center. Elections for two open seats on the Board of Appeals will be held at the start of the meeting, with nominations for the positions being made from the floor.

Both the Board of Selectmen and the Budget Committee recommended the $1,314,018 budget, which is an increase of $36,249 from the current year’s spending plan.

The 44-article warrant includes new items asking voters to approve the lease-purchase of an excavator and to approve funding an upgrade to the heating system in the town garage, which houses the Public Works Department and the Fire Department.

In article 17 of the warrant, voters will be asked to approve an annual $16,687 lease-purchase agreement for a excavator. The town now rents an excavator for an estimated monthly cost of $4,500 plus additional delivery and return costs. The Public Works Department rents an excavator through June and August.

“During these months the possibility is always there that the weather could turn sour and stall work that the excavator has been rented for,” the warrant states.

By entering into an annual lease-purchase agreement, the town would have the excavator available for a longer period of time, allowing for flexibility when weather delays a project.

In Article 23, voters will be asked to approve allocating $22,000 for upgrades to be made to the heating system in the town garage and the Fire Department building. The current system has been failing to provide heat adequately, the warrant states, resulting in constant running of the boiler during the winter, which drives up energy costs.

If voters do not approve Article 23, Article 24, which sets the Pubic Works Department budget, would have to be increased by $10,000 so repairs can be made to the existing system.

Lauren Abbate — 861-9252

labbate@centralmaine.com

Twitter: @Lauren_M_Abbate

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