The Sebago Board of Selectmen and Budget Committee have finalized a “fairly flat” budget that includes an employee wage freeze but no cuts in town services or hours, said Board Chairman Allen Crabtree.

The $1.78 million municipal budget is $20,000 more than this year’s spending plan, a gap that could be filled if residents opt to use part of the fund surplus to pay for the repair of a plow truck, Crabtree said. The final budget will be voted on by residents at the June town meeting.

“We’ve really gone through line by line and really put a hard test to all our department heads,” said Crabtree. “There should be little to no impact on the tax rate.”

Selectmen had to deal with an $80,000 loss in revenues, from things like excise tax and state revenue sharing. In order to do that while avoiding layoffs or cuts in town services, the board froze employee salaries for the year, Crabtree said. The board also reduced the total stipends for selectmen from $15,000 to $12,000.

“We did not feel that we could ask the employees to tighten their belts if we didn’t do the same,” Crabtree said.

The final picture of next year’s tax rate is not yet clear, because the school budget is not finalized, Crabtree said. Selectmen were told that Sebago’s portion of the school budget may go up 5 percent, though School Administrative District 61 is still negotiating labor contracts, he said.

“Our big concern right now is the SAD 61 school budget,” Crabtree said.