MADISON — Residents will gather Monday for the annual Town Meeting and review a proposed municipal budget totaling $3.5 million.

The meeting is scheduled for 7 p.m. at the Madison Junior High School auditorium at 205 Main St. Voting on municipal elections will be held Tuesday from 8 a.m. until 8 p.m. at the Old Point Avenue School.

The proposed $3.5 million town budget is an increase from last year of roughly 3.5%, Town Manager Tim Curtis said. There is no one item that’s driving up the budget, he said, explaining that the increase is due to expenses outside the town’s control.

Several articles on the Town Meeting warrant relate to the spending of federal American Rescue Plan Act money. Those articles include $116,000 for roads, $50,000 for Fire Department equipment, $35,000 for a small business grant program, and $60,000 for town renovations like new windows for the Town Office, Curtis said.

There is also an article to change the town clerk position from an elected position to an appointed one. The town clerk currently holds office for a one-year term. If the article is approved Monday, then the town would make a hire and selectmen would then appoint that person as clerk.

Selectmen believe that the duties of the town clerk have expanded over time, Curtis said, and whoever serves in the role needs to meet certain qualifications. By appointing the clerk instead of electing one, town officials can ensure that the person is qualified for the role.

If residents give their OK, the change would go into effect next year. This means residents will still vote to elect a clerk Tuesday, and that person will serve the one-year term.

There are two new candidates on the ballot for town clerk: Susan Hawley and Triss Smith.

Another article residents will review Monday would change the term for road commissioner from one year to three, Curtis said. The issue came up because the town has a number of road projects coming up over the next several years and selectmen want to see some consistency in that role to manage those multi-year projects, he said.

When it comes to elected positions on the ballot Tuesday, residents will vote to fill two seats on the Board of Selectmen. The two incumbents for the seats, Ronald Moody and Chair Albert Veneziano, are running, as is Randolph Bliss.

There is also a contested race for two positions on the Maine School Administrative District 59 board of directors. There are four candidates vying for the two seats: Irene Christopher, Angela McKenney, Amanda Pepin and Jo Anne Spaulding.

There are also two elections for seats on the Anson-Madison Water District board of trustees. One position is for a three-year term and has one candidate, John Ducharme III, who currently sits on the board. The second position is for a two-year term, and has two candidates: incumbent Philip Curtis and Kevin Lombard.

The water district has faced scrutiny in the last several months after the superintendent was charged with theft and fired, then charges were dropped before being brought again. Trustees chose to dismiss the rest of the district staff and contracted with the Maine Rural Water Association to manage all district operations.