The Rockport Select Board has directed the town manager to devise three separate budget packages, one that shows no increase, one that represents a 10 percent reduction in costs and one that shows a 20 percent reduction.

Department heads had already been asked to submit figures with as close to no increase from this year as possible, Town Manager Bob Peabody said.

At the Jan. 11 Select Board meeting, some board members suggested building a budget that takes any education-related expenses into account to ensure that overall, between municipal, school and county expenses, there is no increase to taxpayers.

School officials are projecting a $1 million loss in subsidy for the Five Town Community School District and another $250,000 loss for Maine School Administrative District 28. The districts should receive preliminary figures from the Maine Department of Education in February.

Overall, Rockport taxpayers are spending $11 million to fund town, school and county entities this year. Of that amount, $3.9 million is for municipal-related expenses.

A 10 percent reduction in town expenses would mean $390,000 would need to be cut and a 20 percent reduction would mean $780,000 in cuts.

Selectman Tom Farley has previously said the town can no longer say all programs are a necessity. He said there are departments that run efficiently, but there are also areas that could be improved.