MEXICO — Selectmen will decide at their June 26 meeting what steps to take for the municipal budget since voters turned down two of the 21 articles at a referendum Tuesday.

Town Manager John Madigan said Wednesday that this is the first time in the six years the municipal budget has been voted on at the polls that an article has been rejected.

Voters rejected $144,100 for operating the recreation program, park and building. Residents voted 158-209 to reject the figure that represented a 54 percent increase over the $93,600 approved during fiscal year 2012.

The more than $50,000 added to the Recreation Department account was earmarked for building and park repairs, a Recreation Department reserve fund, and for increasing the Recreation Director’s job to full time.

Madigan said until a new figure is approved by voters, the department will operate on the 2012 budget, beginning July 1.

He said the town ordinance allows one more vote on articles that do not pass at referendum, whether at the polls or at a town meeting. A public hearing must be held.

The same procedure holds true for the unclassified/miscellaneous account that was rejected 160-187. The amount was $64,751, or about $2,000 more than this year.

The unclassified account provides funding for such things as economic development, code enforcement, legal expenses, municipal dues and contingency funds.

With those two articles defeated, voters approved a $2.8 million municipal budget. Selectmen recommended more than $3 million.

Madigan said the board can decide whether to come back to voters with figures that are the same, more, or less than the defeated articles.

The budget must be in place by the end of August so the tax rate can be set and bills sent.